Expeditors' discipline, news by Hebei Longsheng metals and minerals co., ltd
| Expeditors’ discipline can’t prevent a slide in profitability Expeditors International followed its peers in reporting higher-than-expected revenue growth in the third quarter. The 16.0% year-over-year increase in revenues was 290 basis points above analysts’ forecasts and included an 8.0% surge in ocean freight shipping. The company has flagged a need to be disciplined in terms of pricing. That can be seen in the firm's U.S.-inbound volumes that rose by just 4.3% vs. 6.9% for the third party logistics (3PL) growth on average. The widening U.S.-China trade war may crimp future volume growth. Expeditors' volumes originating in China represented 30.6% of total U.S.-bound seaborne volumes in the past 12 months. Despite pricing discipline the company still saw a decline in its EBITDA margin to 10.4%, down from 11.1% a year earlier as higher costs bit into earnings. |
