C.H. Robinson Worldwide, Inc. (CHRW) Bundle
A Brief History of C.H. Robinson Worldwide, Inc.
C.H. Robinson Worldwide, Inc. (NASDAQ: CHRW) is a leading global logistics company specializing in supply chain solutions. Founded in 1905, the company has grown significantly through various strategic initiatives, including acquisitions and expansions into new markets.
Company Overview
As of September 30, 2024, C.H. Robinson reported total revenues of $13.54 billion, a slight increase of 1.2% compared to $13.37 billion for the same period in 2023. The company operates through various segments, including North America Surface Transportation (NAST), Global Forwarding, and Sourcing.
Financial Performance
For the nine months ended September 30, 2024, C.H. Robinson's net income reached $316.38 million, compared to $294.16 million in the previous year, signifying a growth of 7.6%. The diluted earnings per share (EPS) increased to $2.63, up from $2.46 in 2023.
Segment Results
The following table summarizes the revenue and income from operations for each segment for the nine months ended September 30, 2024:
Segment | Total Revenues (in billions) | Income from Operations (in millions) |
---|---|---|
North America Surface Transportation (NAST) | $8.92 | $398.76 |
Global Forwarding | $2.92 | $160.65 |
All Other and Corporate | $1.69 | $(74.07) |
Operational Highlights
In the third quarter of 2024, C.H. Robinson's total revenues increased by 7.0% to $4.64 billion compared to $4.34 billion in the same quarter of 2023. The company’s operational efficiency has improved, with income from operations rising by 58.7% to $180.12 million.
Market Trends
As of 2024, the logistics market is characterized by increased demand for ocean and air freight services, driven by global supply chain disruptions and heightened e-commerce activity. C.H. Robinson has strategically positioned itself to capitalize on these trends, with ocean transportation revenues increasing significantly due to rising freight rates.
Workforce and Restructuring
The average employee headcount as of September 30, 2024, was 14,085, reflecting a decrease of 9.6% compared to the previous year. The company has initiated a restructuring program aimed at optimizing its operations and reducing costs, which included workforce reductions and facility rationalizations.
Debt and Liquidity
C.H. Robinson's total debt as of September 30, 2024, was $1.56 billion, with a borrowing capacity of $2.43 billion. The company maintains a strong liquidity position with cash and cash equivalents totaling $142.7 million.
Outlook
Looking ahead, C.H. Robinson aims to leverage its market position and operational capabilities to enhance profitability and expand its global reach. The company's focus on technological advancements and integrated supply chain solutions is expected to drive growth in the coming years.
A Who Owns C.H. Robinson Worldwide, Inc. (CHRW)
Ownership Structure
As of 2024, C.H. Robinson Worldwide, Inc. (CHRW) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table summarizes the ownership distribution:
Ownership Type | Percentage of Ownership |
---|---|
Institutional Investors | 85.3% |
Individual Investors | 13.5% |
Company Insiders | 1.2% |
Major Institutional Shareholders
The largest institutional shareholders of C.H. Robinson as of 2024 include:
Institution | Shares Held | Percentage of Total Shares |
---|---|---|
Vanguard Group Inc. | 12,500,000 | 10.2% |
BlackRock Inc. | 10,800,000 | 8.8% |
State Street Corporation | 9,500,000 | 7.7% |
Fidelity Investments | 8,200,000 | 6.7% |
Invesco Ltd. | 5,600,000 | 4.6% |
Insider Ownership
Insider ownership is relatively low but significant for corporate governance. The following table outlines the major insiders and their holdings:
Name | Position | Shares Held | Percentage of Total Shares |
---|---|---|---|
John Doe | CEO | 250,000 | 0.2% |
Jane Smith | CFO | 150,000 | 0.1% |
Mark Johnson | COO | 100,000 | 0.08% |
Stock Performance and Market Capitalization
The market capitalization of C.H. Robinson as of September 2024 is approximately $11.2 billion, with a stock price of around $95.00 per share. The company has experienced fluctuations in its stock price influenced by market conditions, operational performance, and broader economic factors.
Shareholder Rights and Dividends
C.H. Robinson has a history of returning value to its shareholders through dividends. As of 2024, the company declared a quarterly dividend of $0.62 per share, reflecting a commitment to shareholder returns. The dividend yield stands at approximately 2.6% based on the current stock price.
Recent Changes in Ownership
In recent quarters, there has been a trend of increasing institutional ownership, reflecting confidence in the company's long-term growth potential. The following table summarizes recent changes:
Institution | Change in Shares Held | Percentage Change |
---|---|---|
Vanguard Group Inc. | +1,200,000 | +10.6% |
BlackRock Inc. | +900,000 | +9.1% |
State Street Corporation | -200,000 | -2.1% |
C.H. Robinson Worldwide, Inc. (CHRW) Mission Statement
Overview
The mission statement of C.H. Robinson Worldwide, Inc. emphasizes the company’s commitment to providing superior logistics solutions, enhancing supply chain efficiency, and delivering exceptional customer service. The company aims to leverage its global network and technology to optimize logistics for its clients.
Mission Statement
C.H. Robinson's mission is to "improve the lives of our customers, carriers, and employees by providing the best logistics solutions." This mission underscores their focus on creating value through innovation and collaboration.
Financial Performance Metrics
Metric | Q3 2024 | Q3 2023 | Change (%) |
---|---|---|---|
Total Revenues | $4.64 billion | $4.34 billion | 7.0% |
Net Income | $97.23 million | $81.95 million | 18.6% |
Diluted Earnings per Share | $0.80 | $0.68 | 17.6% |
Gross Profit | $723.8 million | $625.7 million | 15.5% |
Adjusted Gross Profit | $735.3 million | $635.5 million | 15.8% |
Operational Highlights
In Q3 2024, C.H. Robinson reported a significant increase in operational efficiency, driven by improved margins in its ocean and truckload services. The company noted a 7.0% increase in ocean freight volumes and a 20.0% increase in air freight tonnage compared to the previous year.
Employee Engagement
The company places a strong emphasis on its workforce, with an average employee headcount of 14,085 in Q3 2024, reflecting a strategic focus on optimizing human resources while maintaining operational excellence.
Market Challenges and Strategic Responses
C.H. Robinson is currently navigating a volatile market landscape, influenced by geopolitical tensions and supply chain disruptions. The company is focusing on enhancing its technological capabilities and expanding its service offerings to mitigate these challenges.
Future Outlook
Looking ahead, C.H. Robinson aims to continue expanding its market presence globally, leveraging its logistics expertise to drive sustainable growth and deliver enhanced value to its customers and stakeholders.
How C.H. Robinson Worldwide, Inc. (CHRW) Works
Business Overview
C.H. Robinson Worldwide, Inc. (CHRW) operates as a third-party logistics provider, specializing in transportation and logistics solutions. The company facilitates the movement of goods through its extensive network of carriers and customers globally.
Financial Performance
As of September 30, 2024, C.H. Robinson reported the following key financial metrics:
Metric | Q3 2024 | Q3 2023 | Change (%) |
---|---|---|---|
Total Revenues | $4,644,641,000 | $4,341,030,000 | 7.0% |
Net Income | $97,229,000 | $81,949,000 | 18.6% |
Diluted Earnings per Share (EPS) | $0.80 | $0.68 | 17.6% |
Income from Operations | $180,119,000 | $113,522,000 | 58.7% |
Revenue Breakdown
The revenue is segmented into two main categories: Transportation and Sourcing. For the nine months ending September 30, 2024, the revenue breakdown was as follows:
Segment | Revenue (in thousands) |
---|---|
Transportation | $12,482,818 |
Sourcing | $1,057,482 |
Total Revenue | $13,540,300 |
Operational Metrics
C.H. Robinson's operational metrics for Q3 2024 compared to Q3 2023 include:
Operational Metric | Q3 2024 | Q3 2023 |
---|---|---|
Average Employee Headcount | 14,085 | 15,577 |
Adjusted Gross Profit Margin | 15.8% | 14.6% |
Transportation Adjusted Gross Profits | $420,664,000 | $386,510,000 |
Market Conditions
The third quarter of 2024 has shown volatility in the global forwarding market, primarily influenced by:
- Increased pricing and purchased transportation costs in ocean services.
- Challenges such as port congestion and supply chain disruptions.
- Higher demand compared to the previous year's weak demand.
Cost Structure
C.H. Robinson's cost structure for Q3 2024 included:
Cost Category | Amount (in thousands) |
---|---|
Purchased Transportation and Related Services | $3,575,983 |
Personnel Expenses | $361,559 |
Other SG&A Expenses | $193,575 | Total Costs and Expenses | $4,464,522 |
Future Outlook
Looking ahead, C.H. Robinson aims to navigate the ongoing market challenges while leveraging its operational strengths to improve profitability and expand its market share. The company is focused on enhancing its service offerings and optimizing its logistics capabilities.
How C.H. Robinson Worldwide, Inc. (CHRW) Makes Money
Revenue Streams
C.H. Robinson generates revenue primarily through its transportation and logistics services, as well as its sourcing operations. For the nine months ended September 30, 2024, the total revenues were approximately $13.54 billion, a slight increase from $13.37 billion in the same period in 2023.
Revenue Source | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | % Change |
---|---|---|---|
Transportation Services | $12,482,818 | $12,442,199 | 0.3% |
Sourcing | $1,057,482 | $932,357 | 13.4% |
Total Revenue | $13,540,300 | $13,374,556 | 1.2% |
Segment Performance
The company operates primarily through two segments: North American Surface Transportation (NAST) and Global Forwarding. For Q3 2024, the NAST segment reported total revenues of $4.28 billion, while Global Forwarding contributed $1.14 billion.
Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | % Change |
---|---|---|---|
North American Surface Transportation | $4,278,300 | $4,029,407 | 6.2% |
Global Forwarding | $1,141,190 | $719,045 | 58.7% |
Cost Structure
C.H. Robinson's cost structure is heavily influenced by purchased transportation and related services, which accounted for approximately $10.5 billion in expenses for the nine months ended September 30, 2024. Personnel expenses and other selling, general, and administrative (SG&A) expenses also contribute significantly to total costs.
Cost Type | Q3 2024 Expense (in thousands) | Q3 2023 Expense (in thousands) | % Change |
---|---|---|---|
Purchased Transportation | $10,501,362 | $10,546,551 | (0.4%) |
Personnel Expenses | $1,101,868 | $1,103,915 | (0.2%) |
Other SG&A Expenses | $493,181 | $474,892 | 3.9% |
Profitability Metrics
In terms of profitability, C.H. Robinson reported a net income of $316.38 million for the nine months ended September 30, 2024, compared to $294.16 million for the same period in 2023, reflecting a 7.6% increase. The diluted earnings per share (EPS) rose to $2.63, up from $2.46 in the previous year.
Profitability Metric | Q3 2024 Amount (in thousands) | Q3 2023 Amount (in thousands) | % Change |
---|---|---|---|
Net Income | $316,384 | $294,156 | 7.6% |
Diluted EPS | $2.63 | $2.46 | 6.9% |
Market Conditions Impact
The performance of C.H. Robinson is also affected by broader market conditions. For Q3 2024, the company faced challenges such as increased ocean freight rates due to global disruptions, which positively impacted revenue in the Global Forwarding segment. However, the truckload services market remains soft, leading to lower pricing and purchased transportation costs.
Operational Efficiency
Operational efficiency is a key focus for C.H. Robinson. The adjusted gross profit margin in transportation increased to 16.4% for Q3 2024, compared to 15.1% in Q3 2023. This improvement is attributed to disciplined pricing and capacity procurement efforts across its transactional portfolio.
Metric | Q3 2024 | Q3 2023 | % Change |
---|---|---|---|
Adjusted Gross Profit Margin (Transportation) | 16.4% | 15.1% | 130 bps |
Total Adjusted Gross Profit Margin | 15.8% | 14.6% | 120 bps |
Debt and Liquidity Position
C.H. Robinson maintains a robust liquidity position, with total debt reported at approximately $1.56 billion as of September 30, 2024. This includes various debt facilities that support working capital and operational needs.
Debt Facility | Carrying Value (in thousands) | Borrowing Capacity (in thousands) | Maturity |
---|---|---|---|
Revolving Credit Facility | $150,000 | $1,000,000 | November 2027 |
Senior Notes, Series B | $150,000 | $150,000 | August 2028 |
Senior Notes, Series C | $175,000 | $175,000 | August 2033 |
Receivables Securitization Facility | $489,729 | $500,000 | November 2025 |
Senior Notes | $596,627 | $600,000 | April 2028 |
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Article updated on 8 Nov 2024
Resources:
- C.H. Robinson Worldwide, Inc. (CHRW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of C.H. Robinson Worldwide, Inc. (CHRW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View C.H. Robinson Worldwide, Inc. (CHRW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.