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C.H. Robinson Announces Interim Chief Financial Officer and Changes to Segment Reporting Structure

By Business Wire,  April 01, 2019, 04:15:00 PM EDT


EDEN PRAIRIE, Minn.--(BUSINESS WIRE)-- C.H. Robinson Worldwide, Inc. ("C.H. Robinson" or the "Company") (Nasdaq:CHRW) announced today that Scott Hagen, Corporate Controller, will also serve as Interim Chief Financial Officer, effective immediately, while the Company completes its search for a permanent CFO. Scott has led C.H. Robinson's accounting and financial reporting teams since 2008.

C.H. Robinson also announced today that the Company has reorganized its enterprise transportation services structure in the first quarter of 2019 to combine its North American Surface Transportation ("NAST") and Robinson Fresh transportation networks. The newly combined transportation network will be managed by and reported under the NAST segment.

With this structure change, first quarter 2019 operating results will be based on two reportable segments: NAST and Global Forwarding. Robinson Fresh(1) results will be combined with the Managed Services and Other Surface Transportation segments in the "All Other and Corporate" category. To provide a basis for comparison, we have provided certain historical segment information under the new segment organization.

"As we combine the best practices of the NAST and Robinson Fresh transportation networks, we believe we are well positioned to support the future growth of Robinson Fresh and also strengthen the overall effectiveness of our temperature controlled service offering," said Bob Biesterfeld, Chief Operating Officer and CEO-elect of C.H. Robinson. "Robinson Fresh is an important part of our history and our culture. We take great pride in our Robinson Fresh team, who works every day to bring fresh food to the tables of families around the world."

(1)Robinson Fresh results now primarily consist of the Sourcing service line and its related transportation.

About C.H. Robinson

At C.H. Robinson, we believe in accelerating global trade to seamlessly deliver the products and goods that drive the world's economy. Using the strengths of our knowledgeable people, proven processes, and global technology, we help our customers work smarter, not harder. As one of the world's largest third-party logistics providers (3PL), we provide a broad portfolio of logistics services, fresh produce sourcing and managed services for more than 124,000 customers and 76,000 active contract carriers through our integrated network of offices and more than 15,000 employees. In addition, the Company, our Foundation and our employees contribute millions of dollars annually to a variety of organizations. Headquartered in Eden Prairie, Minnesota, C.H. Robinson ( CHRW ) has been publicly traded since 1997. For more information, visit www.chrobinson.com.

Forward-Looking Statements

Except for the historical information contained herein, the matters set forth in this release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to, such factors such as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; competition and growth rates within the third party logistics industry; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; changes in relationships with existing contracted truck, rail, ocean, and air carriers; changes in our customer base due to possible consolidation among our customers; our ability to successfully integrate the operations of acquired companies with our historic operations; risks associated with litigation, including contingent auto liability and insurance coverage; risks associated with operations outside of the United States; risks associated with the potential impact of changes in government regulations; risks associated with the produce industry, including food safety and contamination issues; fuel price increases or decreases, or fuel shortages; cyber-security related risks; the impact of war on the economy; changes to our capital structure; risks related to the elimination of LIBOR; and other risks and uncertainties detailed in our Annual and Quarterly Reports.

Quarterly Business Segment Information

(unaudited, dollars in thousands)

         
NAST

Global

Forwarding

All

Other and

Corporate

Eliminations Consolidated
Three Months Ended March 31, 2018
Revenues $ 2,908,419 $ 553,754 $ 463,154 $ $ 3,925,327
Intersegment revenues (1)   32,164     9,364     7,123     (48,651 )  
Total revenues   2,940,583     563,118     470,277     (48,651 )   3,925,327
Net revenues 438,402 123,037 64,486 625,925
Income from operations 179,637 8,221 3,727 191,585
Depreciation and amortization 6,331 8,909 9,001 24,241
Average headcount 7,298 4,767 3,023 15,088
 
 
NAST

Global

Forwarding

All

Other and

Corporate

Eliminations Consolidated
Three Months Ended June 30, 2018
Revenues $ 3,163,185 $ 617,597 $ 495,255 $ $ 4,276,037
Intersegment revenues (1)   28,922     14,875     4,340     (48,137 )  
Total revenues   3,192,107     632,472     499,595     (48,137 )   4,276,037
Net revenues 459,706 144,031 67,746 671,483
Income from operations 188,244 29,788 976 219,008
Depreciation and amortization 6,288 8,753 9,197 24,238
Average headcount 7,401 4,736 3,092 15,229
 
 
NAST

Global

Forwarding

All

Other and

Corporate

Eliminations Consolidated
Three Months Ended September 30, 2018
Revenues $ 3,224,906 $ 639,268 $ 427,726 $ $ 4,291,900
Intersegment revenues (1)   21,497     12,626     4,187     (38,310 )  
Total revenues   3,246,403     651,894     431,913     (38,310 )   4,291,900
Net revenues 499,463 134,101 60,480 694,044
Income from operations 223,893 23,835 (1,755 ) 245,973
Depreciation and amortization 6,286 8,735 8,902 23,923
Average headcount 7,454 4,684 3,153 15,291
 

(1) Intersegment revenues represent the sales between our segments and are eliminated to reconcile to our consolidated results.

         
NAST

Global

Forwarding

All

Other and

Corporate

Eliminations Consolidated
Three Months Ended December 31, 2018
Revenues $ 3,050,247 $ 677,125 $ 410,536 $ $ 4,137,908
Intersegment revenues (1)   26,060     11,478     7,222     (44,760 )  
Total revenues   3,076,307     688,603     417,758     (44,760 )   4,137,908
Net revenues 508,690 142,737 62,356 713,783
Income from operations 230,070 29,782 (4,335 ) 255,517
Depreciation and amortization 6,385 8,751 9,191 24,327
Average headcount 7,396 4,664 3,183 15,243
 

FY 2018 Business Segment Information

(unaudited, dollars in thousands)

         
NAST

Global

Forwarding

All

Other and

Corporate

Eliminations Consolidated
Twelve Months Ended December 31, 2018
Revenues $ 12,346,757 $ 2,487,744 $ 1,796,671 $ $ 16,631,172
Intersegment revenues (1)   108,643     48,343     22,872     (179,858 )  
Total revenues   12,455,400     2,536,087     1,819,543     (179,858 )   16,631,172
Net revenues 1,906,261 543,906 255,068 2,705,235
Income from operations 821,844 91,626 (1,387 ) 912,083
Depreciation and amortization 25,290 35,148 36,291 96,729
Average headcount 7,387 4,711 3,106 15,204
 

(1) Intersegment revenues represent the sales between our segments and are eliminated to reconcile to our consolidated results.

Net Revenues by Service Line Information

(unaudited, dollars in thousands)

   
Three months ended Twelve months ended

March 31,

2018

 

June 30,

2018

 

September 30,

2018

 

December 31,

2018

December 31,

2018

NAST
Truckload $ 312,952 $ 325,005 $ 362,115 $ 375,289 $ 1,375,361
LTL 110,916 118,176 121,438 116,195 466,725
Intermodal 6,217 9,101 8,178 8,483 31,979
Other   8,317     7,424     7,732     8,723     32,196
Total $ 438,402   $ 459,706   $ 499,463   $ 508,690   $ 1,906,261
 
Global Forwarding
Ocean $ 68,694 $ 86,820 $ 74,700 $ 82,113 $ 312,327
Air 26,037 28,722 28,228 28,051 111,038
Customs 20,655 20,793 23,305 23,762 88,515
Other   7,651     7,696     7,868     8,811     32,026
Total $ 123,037   $ 144,031   $ 134,101   $ 142,737   $ 543,906
 
Robinson Fresh $ 30,237 $ 32,644 $ 26,399 $ 27,003 $ 116,283
Managed Services $ 18,317 $ 20,074 $ 20,080 $ 20,318 $ 78,789
Other Surface Transportation $ 15,932   $ 15,028   $ 14,001   $ 15,035   $ 59,996
Total $ 625,925   $ 671,483   $ 694,044   $ 713,783   $ 2,705,235
 

CHRW-IR

View source version on businesswire.com: https://www.businesswire.com/news/home/20190401005852/en/

Source: C.H. Robinson Worldwide, Inc.



This article appears in: News Headlines

Referenced Stocks: CHRW










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