CH Robinson (CHRW) Q1 2016 Earnings Call

posted in: Earnings Call, Notes | 0

CH Robinson (CHRW) CFO Andrew Clarke says the macroeconomy remains sluggish 

“The macro environment remains sluggish. Despite that, we were able to grow our volumes in nearly all services in the first quarter. We will maintain our focus on profitably taking market share in this softer environment. The market conditions in the second quarter remained pretty consistent with what we saw in the first quarter.”

Won many awards from their Fortune 500 customers

“In 2016, we’ve had many customer awards recognizing our performance as a top logistics provider to prominent companies like Wal-Mart, Coke, Dollar General, Ocean Spray, Home Shopping Network and Brose North America. These awards are a great example of how our team is adding value with the customers.”

Pricing of their services was flat

“Customer pricing remained flat in the quarter and the results of bid pricing in our contractual business is a bit stronger than in the truckload segment, as we are seeing low-single-digit increases in contractual bid responses. We continue to build on our industry-leading position as the largest third-party provider of LTL services in North America and that value proposition is winning across all verticals.”

CH Robinson (CHRW) CEO John Wiehoff says they will open up more offices overseas 

“While we’re proud of our global footprint and it’s changing every day, we also acknowledge that it’s a significant growth opportunity for us to expand in parts of the world where we don’t currently have a presence in our network today. We do have plans to open offices in Europe and Asia that will expand our geographic footprint. There are other parts of the world where we don’t have a presence and work through agents that we think we can continue to grow, as well as optimizing. When we talk about expanding and optimizing, it’s hitting on both the growth and efficiency part of how we think about our network that, as proud as we are on how we can execute, we have a long list of opportunities that we think we can optimize our global network and continue to improve the outcomes for our business partners as well as our results. So expanding and optimizing our global network continues to be a strategic imperative that we think has a lot of upside in it to continue to both grow our business and make it more effective.”