|Expeditors Announces 32% Increase in Third Quarter Net Earnings|
Tuesday November 7, 9:00 am ET
SEATTLE--(BUSINESS WIRE)--Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced quarterly net earnings of $63,803,000 for the third quarter of 2006, compared with $48,404,000 for the same quarter of 2005, an increase of 32%. Net revenues for the third quarter of 2006 increased 20% to $339,338,000 as compared with $281,925,000 reported for the third quarter of 2005. Total revenues and operating income were $1,229,723,000 and $101,257,000 in 2006 compared with $1,046,442,000 and $77,436,000 for the same quarter of 2005, an increase of 18% and 31%, respectively. Diluted net earnings per share for the third quarter were $.29 as compared with $.22 for the same quarter in 2005, an increase of 32%. The company also reported that same store net revenues and operating income increased 20% and 30%, respectively, for the third quarter of 2006 when compared with 2005. The results for the third quarter include a one-time credit of $5.0 million to minority interest, which was recorded as a result of the Company's finalizing the increase in its relative ownership interests in various joint ventures.
For the nine months ended September 30, 2006, net earnings rose to $172,484,000 from $116,148,000 in 2005, an increase of 49%. Net revenues for the nine months increased to $949,105,000 from $763,268,000 for 2005, up 24%. Total revenues and operating income for the nine months were $3,383,639,000 and $275,461,000 in 2006 compared with $2,799,605,000 and $186,614,000 for the same period in 2005, increases of 21% and 48%, respectively. Diluted net earnings per share for the first three quarters of 2006 were $.78 as compared with $.53 for the same period of 2005, an increase of 47%. Same store net revenues and operating income increased 24% and 47%, respectively, for the nine months ended September 30, 2006, when compared with the same period of 2005.
"We continued to benefit from market share expansion and productivity gains during the 3rd quarter," said Peter J. Rose, Chairman and Chief Executive Officer. "These results are more than just superficial numbers attributed to a one quarter spike. When you analyze our year over year performance within our products and across all geographic segments, these numbers have real substance, " Rose continued.
"We have been impressed with both the magnitude and the balance of organic growth we continue to experience. We believe in our model. In what is an increasingly competitive market, we continue to focus on providing superior customer service. Our market share expansion would indicate that we continue to be successful in that undertaking. The efficiency gains we continue to achieve have been key in improving our operating margins, which we believe validates the financial strength of our model. As always, we hasten to point out one other core belief we have at Expeditors: That people and culture do make a difference. All facets of our success can be traced back to these two elements. It is the efforts of our people, who embody and perpetuate that unique Expeditors' culture, which creates results like these," Rose concluded.