|Expeditors Announces 2008 Earnings Per Share Increase of 13%|
Tuesday February 10, 9:00 am ET
SEATTLE--(BUSINESS WIRE)--Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced quarterly total revenues and operating income of $1,307,389,000 and $119,205,000 as compared with $1,446,582,000 and $107,616,000 for the same quarter of 2007, a decrease of 10% and an increase of 11%, respectively. Net earnings were $77,728,000 for the fourth quarter of 2008, compared with $70,057,000 for the same quarter of 2007, also an increase of 11%. Net revenues for the fourth quarter of 2008 increased 6% to $402,481,000 as compared with $379,441,000 reported for the fourth quarter of 2007. Diluted net earnings per share for the fourth quarter were $.36 as compared with $.32 for the same quarter in 2007, an increase of 13%. The Company also reported that same store net revenues and operating income increased 6% and 11%, respectively, for the fourth quarter of 2008 when compared with 2007.
For the year ended December 31, 2008, total revenues and operating income were $5,633,878,000 and $473,136,000 compared with $5,235,171,000 and $423,400,000 for the same period in 2007, increases of 8% and 12% respectively. Net earnings rose to $301,014,000 from $269,154,000 in 2007, an increase of 12%. Net revenues for the year increased to $1,603,261,000 from $1,452,961,000 for 2007, up 10%. Diluted net earnings per share for the year 2008 were $1.37 as compared with $1.21 for the same period of 2007, a 13% increase. Same store net revenues and operating income increased 10% and 12%, respectively, for the year ended December 31, 2008, when compared with the same period of 2007.
“Given the incessant tales of woe emanating from Wall Street these days, we hope the consistency and stability projected by these results will be reassuring to our employees, to our customers and to our shareholders,” said Peter J. Rose, Chairman and Chief Executive Officer. “The efforts to make this fourth quarter a success started back in the 2008 first quarter, when we banned the internal use of the “R” word as an excuse for poor performance. There was no magic formula. We simply executed. We increased productivity through on-going process improvement initiatives; we reduced our exposure where we struggled to make money; we cut back on discretionary overhead expenses, like travel and entertainment; and we were increasingly selective with our service provider allocations. This resulted in expanded net revenue yields and higher operating margins, all while offering market-competitive rates and uncompromising service to our customers. We also expanded market share through aggressively focusing on new products, like Sea-Air, new customers and new market vertical opportunities," Rose commented.
“Looking forward to 2009, we definitely understand that we have our work cut out for us. That said, we also have a lot going for us: a strong balance sheet with no debt and nearly three-quarters of a billion dollars in cash; a successful, proven business model that has worked in slow times as well as in boom times; and most important of all, the best trained and best motivated employees in the business - all of which are reinforced by our performance-based culture. Unlike the banking industry, however, our people understand that without real cash profits, there can be no real cash bonuses. Our incentive based bonus system, tied to a strictly GAAP definition of cumulative operating income, keeps our people focused and grounded. They also understand that the most effective way of perpetuating profits is to keep our existing customers satisfied while aggressively attracting new business. With this combination of factors working for us, we’re confident that we’ll find ways to turn challenges into opportunities. We always have,” Rose concluded.