Despite a difficult operating environment (negative to slow growth in shipping demand), CHRW was able to earn 49 cents for the 4th quarter of fiscal year 2008 compared to 41 cents during the same period a year ago. Revenues rose 19% to 1.95 billion. CHRW benefited from fuel surcharges (which increase with rising oil prices) and gaining market share.
Oil prices hit $100 per barrell. Transportation stocks sank as worries over the consumer mounted. Prices at gas stations, a weakening housing market, and rising unemployment appears to be huring consumer demand at stores. With less goods going off the shelf, trucking and logistics firms are shipping less goods, which hurts revenue.
C.H. Robinson increased its quarterly dividend from 18 cents to 22 cents. While asset-based freight service providers have struggled, C.H. Robinson has been able to take advantage of excess trucking capacity created by weakness in the U.S. Economy.
