Expeditors International beats Wall Street profit expectations, shares jump 7 percent

Expeditors 4Q profit falls; signs of improvement

NEW YORK — Shares of Expeditors International of Washington jumped 7 percent Tuesday after the shipping logistics company reported much stronger final quarter than many had expected.

The economic downturn has hit the shipping industry hard because companies moving fewer goods. That has created fierce competition for business.

For Expeditors International, that led to a profit decline of 11 percent to $69.1 million, or 32 cents per share, from $77.7 million, or 36 cents per share, a year ago.

Yet the company easily beat the expectations of analysts polled by Thomson Reuters, who were expecting earnings of 28 cents per share.

There were also some signs of improvement.

“Despite the capacity challenges in the airfreight markets, which resulted in rapid rate increases and associated yield declines, it was reassuring to once again experience airfreight tonnages greater than those handled during the same period the year before,” said Chairman and CEO Peter Rose.

Tonnage, used to measure freight, rose 16 percent on the quarter, and 36 percent in December alone.

Revenue for the quarter, however, dipped 5 percent to $1.2 billion. Ocean freight and services revenue fell 24 percent to $348.3 million, while airfreight services revenue rose 8 percent to $628.1 million.

In 2009, earnings dropped 20 percent to $240.2 million, or $1.11 per share, from $301 million, or $1.37 per share, in the prior year. Revenue fell 27 percent to $4.1 billion in 2009.

Shares of Expeditors International of Washington Inc. rose $2.32 to $36.86.