SEATTLE, WA: Expeditors International of Washington reported a net profit of US$99.38 million for the fourth quarter of 2014 – an increase of 19 percent year-on-year. Net revenue for the period rose nine percent to US$518.87 million compared to 2013.
Net profit for 2014 was US$376.88 million, an increase of eight percent year-on-year as net revenues rose five percent to US$1.98 billion. Total revenue and operating income was US$6.56 billion and US$594.64 million respectively – a rise of eight percent over 2013.
"During the 2014 fourth quarter we saw strong year-over-year increases in both air and ocean freight volumes. Despite the 10 basis point reduction in overall net revenue margin, airfreight and ocean freight net revenues both managed double-digit increases, up 10 percent and 11 percent, respectively," said Bradley Powell, senior vice president and CFO.
Powell added that the double-digit growth in operating income as well as air and ocean freight net revenue provided the company with positive reinforcement at a very opportune time. Jeffrey Musser, president and CEO, added this was particularly true "in light of a global economy that still struggles to gain traction".
Referring to the protracted West Coast ports slowdown, he acknowledged "the long hours and extraordinary efforts by our ocean team to assist our customers in working through a most difficult and challenging ocean freight environment".
Musser said he felt good about the coming year based on the momentum of the last several quarters. He also paid tribute to the retirement this year of Expeditor co-founder and Asia-Pacific president James Wang who will remain a board member.
"We could not write a press release long enough to list all of James' contributions over the last 34 years. We do, however, want to publicly thank James and acknowledge the critical and formative roles he played in both the establishment and development of Expeditors. His foresight and vision in our company's early years led to the creation of a strong network of offices in the then-emerging manufacturing markets in Asia...We will miss James' day-to-day mentoring, three-word aphorisms, his way of simplifying complex issues, and, most of all, the respect and courtesy he showed as he helped build Expeditors and develop its future leaders," Musser added.