C.H. Robinson 2022 revenue up 7% on higher pricing

C.H. Robinson reported a 7 percent increase in 2022 revenue at $24.7 billion, driven primarily by higher pricing in truckload, less-than truckload (LTL) and ocean services.

Adjusted gross profits increased 14 percent to $3.6 billion, on higher adjusted gross profit per transaction in truckload and LTL services, says an official release.

Income from operations totaled $1.3 billion, up 17 percent from last year.

"We're increasing our focus on delivering a scalable operating model to lower our costs, improve the customer and carrier experience and foster long-term profitable growth through cycles," says Interim Chief Executive Officer Scott Anderson. "The current point in the cycle is one of shippers managing through elevated inventories amidst slowing economic growth, causing unseasonably soft demand for transportation services. At the same time, prices for ground transportation and global freight forwarding are declining due to the changing balance of supply and demand.

"While a correction in the freight forwarding market was certainly expected, the speed and magnitude of the correction in only two quarters was unexpected, with ocean rates on some trade lanes already back to pre-pandemic levels. I believe we’re uniquely positioned in the marketplace to deliver for our shippers, carriers and shareholders through a combination of our digital solutions, our global suite of services and our network of global logistics experts."

For Q42022, total revenues decreased 22 percent to $5.1 billion, driven by lower pricing and volume across most services. Adjusted gross profits decreased 10 percent to $768.2 million, on lower adjusted gross profit per transaction in ocean and air.

Outlook
"As inflationary pressures continue to weigh on global economic growth and freight markets present cyclical challenges, we need to continue evolving our organisation to bring greater focus to our highest long-term strategic priorities, including keeping the needs of our customers and carriers at the centre of what we do while lowering our overall cost structure by driving scale," Anderson added.

"I believe in the strategy that the team is executing on to deliver a scalable operating model. We expect this initiative will continue to drive improvements in our customer and carrier experience and amplify the expertise of our people, all of which we believe will drive market share gains and growth. We expect these efforts will also improve our productivity, which will reduce our operating costs and lead to improved returns for our shareholders."