Today, C.H. Robinson Worldwide has released its 10-K report. C.H. Robinson Worldwide, Inc. provides freight transportation services, logistics, and supply chain services globally, operating in two segments: North American Surface Transportation and Global Forwarding. The company's shares have moved -1.7% on the market, now trading at a price of $72.42.
In 2023, C.H. Robinson reported consolidated total revenues of $17.6 billion, a decrease of 28.7% from the previous year. The company's adjusted gross profits decreased by 27.5% to $2.6 billion, primarily driven by lower adjusted gross profits per transaction in truckload and ocean services. Operating income totaled $514.6 million, down 59.4% from the previous year, due to a decline in adjusted gross profits, partially offset by the decline in operating expenses. The company's net income totaled $325.1 million, down 65.4% from the previous year.
The North America surface transportation market experienced weak freight demand and excess carrier capacity, resulting in a soft market with transportation rates at or near the estimated cost to operate a truck. The global forwarding market also faced softening market conditions due to expanded ocean vessel capacity relative to demand. As a result, C.H. Robinson's total revenues and adjusted gross profits in ocean and air freight businesses declined in 2023 compared to the previous year.
In terms of selected operating performance, C.H. Robinson's total revenues decreased by 28.7% to $17.6 billion, primarily driven by lower pricing in ocean and truckload services. Gross profits decreased by 27.9% to $2.6 billion, and personnel expenses decreased by 14.9% to $1.5 billion. The company's average employee headcount decreased by 8.9%.
For more information, read the company's full 10-K submission here.
