Expeditors second-quarter profit falls as Red Sea tensions weigh (updated)

Expeditors International of Washington

06/08/2024 15:10

(Recasts lede, adds shares in paragraph 2, details from release
in paragraph 5)
       Aug 6 (Reuters) - Logistics provider Expeditors
International of Washington  EXPD.N  reported a lower
second-quarter profit on Tuesday, after weak demand and
political tensions in the Red Sea weighed on its ocean routing
unit.
        Shares of the company were down about 5% in early trade.
  
    The Seattle, Washington-based company said geopolitical
events in the Red Sea had led to less frequent services,
extended transit times, and port congestion, while a surge in
e-commerce demand had strained its air market capacity.
    "We have continued to adjust to the disruptions and uneven
demand, keeping costs in check while we work to bring efficiency
back in line with historical expectations," Expeditors CEO
Jeffrey Musser said.
    Musser added that the company faces headwinds related to
demand, capacity, pricing, and unpredictable events with the
potential to impact global shipping times, despite some signs of
improving market conditions.
    The company's net income in the second quarter ended June 30
fell to $175 million or $1.24 per share, compared with $196.8
million or $1.30 per share a year ago.
    Analysts, on average, expected the company to report a
profit of $1.26 per share, according to LSEG data. 
    The company, which has a presence in more than 100
countries, reported a 9% rise in quarterly revenue to $2.4
billion, beating analysts' estimates of about $2.28 billion.    

 (Reporting by Abhinav Parmar and Nathan Gomes in Bengaluru;
Editing by Tasim Zahid)
 ((Abhinav.Parmar@thomsonreuters.com;))