C.H. Robinson beats Q2 profit estimates as cost cuts offset weak revenue

Global freight forwarder C.H. Robinson CHRW reported second-quarter profit above Wall Street estimates on Wednesday, as cost-cutting measures, including job reductions, helped cushion the impact of falling revenue in its truckload and ocean shipping businesses.

The Minnesota-based company reported adjusted income of $1.29 per share for the quarter ended June 30, compared with analysts' average estimate of $1.16, according to data compiled by LSEG.

Total direct expenses fell 9.2% in the quarter, driven by cost-saving initiatives and the divestiture of its European surface transport business.

The company's workforce shrank by 1,616 positions, or 11.2% year-on-year, to 12,858 employees.

Revenue declined 7.7% to $4.14 billion, missing expectations of $4.17 billion largely due to lower pricing in ocean services and reduced fuel surcharges in truckload operations.

C.H. Robinson’s ocean segment focuses on managing freight costs and optimizing shipping routes, while its North American surface transportation division — one of the largest freight brokerage operations in the U.S. — connects shippers with carriers across the continent.

Shares of the company rose more than 2% in after-hours trading. They have fallen close to 6% since the start of the year.