|Expeditors Announces 23% Increase in 2006 Annual Earnings|
Tuesday February 13, 9:00 am ET
SEATTLE--(BUSINESS WIRE)--Expeditors International of Washington, Inc. (Nasdaq:EXPD) today announced quarterly total revenues and operating income of $1,242,327,000 and $99,655,000 compared with $1,102,176,000 and $84,439,000 (1) for the same quarter of 2005, increases of 13% and 18%, respectively. Net earnings were $62,610,000 for the fourth quarter of 2006, compared with $74,287,000 of 2005, (which included a one-time tax benefit of $21,680,000), a decrease of 16%. Net revenues for the fourth quarter of 2006 increased 13% to $333,834,000 as compared with $296,341,000 reported for the fourth quarter of 2005. Diluted net earnings per share for the fourth quarter were $.28 as compared with $.34 (1) for the same quarter in 2005, a decrease of 18%. The company also reported that same store net revenues and operating income increased 13% and 18%, respectively, for the fourth quarter of 2006 when compared with 2005. As disclosed previously, the company noted that the fourth quarter and full year results for 2005 include a one-time tax benefit which increased earnings $21,680,000 ($.10 per share). This tax benefit in 2005 was the result of a one-time election under section 965 of the Internal Revenue Code.
For the year ended December 31, 2006, total revenues and operating income were $4,625,966,000 and $375,116,000 in 2006 compared with $3,901,781,000 and $271,053,000 (1) for the same period in 2005, increases of 19% and 38%, respectively. Net earnings rose to $235,094,000 from $190,436,000 in 2005, an increase of 23%. Net revenues for the year increased to $1,282,939,000 from $1,059,609,000 for 2005, up 21%. Diluted net earnings per share for the year 2006 were $1.07 as compared with $.86 (1) for the same period of 2005, an increase of 24%. Same store net revenues and operating income increased 21% and 38%, respectively, for the year ended December 31, 2006, when compared with the same period of 2005.
"We'll take these fourth quarter results, particularly given the rather stiff comparisons we were up against," said Peter J. Rose, Chairman and Chief Executive Officer. "Growth in airfreight was good, particularly viewed in context of the blowout 4th quarter of 2005. Ocean freight volumes were very strong throughout the entire quarter and our brokerage product just continues to reliably roll along, taking market share as it goes. Our ability to provide alternatives in both the air and ocean transportation markets, with consistent global service, quality and visibility standards coupled with a seamless brokerage product is providing some definite advantages," Rose remarked.
"We continue to do all the right things right. We move forward by enhancing our systems, improving our productivity and developing our people," Rose went on to say. "Our unrelenting focus on customer service brought in nearly $725 million more business in 2006 than in 2005. From a historical perspective, we grew nearly as much in 2006 as we did in those first 15 years-from 1981 until 1996. Despite the rigors of Sarbanes-Oxley, stock option expensing, natural disasters or whatever other obstacles present themselves, our employees are prepared to execute and get the job done--and they've done just that. We're grateful to every last one of them," Rose added. "Looking forward to 2007, there is no time to rest on past success. We cannot lose touch with what's most important-our people and our customers. And we cannot forget 'from whence we've come,'" Rose concluded.