EX-99.1 2 ex991transportationresegme.htm EXHIBIT 99.1 Exhibit


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C.H. Robinson
14701 Charlson Rd.
Eden Prairie, MN 55347
www.chrobinson.com

 
FOR INQUIRIES, CONTACT:
Robert Houghton, Vice President of Investor Relations and Treasury

FOR IMMEDIATE RELEASE

C.H. Robinson Announces Interim Chief Financial Officer and Changes to Segment Reporting Structure

EDEN PRAIRIE, MINNESOTA, April 1, 2019 – C.H. Robinson Worldwide, Inc. (“C.H. Robinson” or the “Company”) (Nasdaq: CHRW) announced today that Scott Hagen, Corporate Controller, will also serve as Interim Chief Financial Officer, effective immediately, while the Company completes its search for a permanent CFO. Scott has led C.H. Robinson’s accounting and financial reporting teams since 2008.

C.H. Robinson also announced today that the Company has reorganized its enterprise transportation services structure in the first quarter of 2019 to combine its North American Surface Transportation (“NAST”) and Robinson Fresh transportation networks. The newly combined transportation network will be managed by and reported under the NAST segment.

With this structure change, first quarter 2019 operating results will be based on two reportable segments: NAST and Global Forwarding. Robinson Fresh(1) results will be combined with the Managed Services and Other Surface Transportation segments in the “All Other and Corporate” category. To provide a basis for comparison, we have provided certain historical segment information under the new segment organization.

“As we combine the best practices of the NAST and Robinson Fresh transportation networks, we believe we are well positioned to support the future growth of Robinson Fresh and also strengthen the overall effectiveness of our temperature controlled service offering,” said Bob Biesterfeld, Chief Operating Officer and CEO-elect of C.H. Robinson. “Robinson Fresh is an important part of our history and our culture. We take great pride in our Robinson Fresh team, who works every day to bring fresh food to the tables of families around the world.”

(1) Robinson Fresh results now primarily consist of the Sourcing service line and its related transportation.


About C.H. Robinson
At C.H. Robinson, we believe in accelerating global trade to seamlessly deliver the products and goods that drive the world’s economy. Using the strengths of our knowledgeable people, proven processes, and global technology, we help our customers work smarter, not harder. As one of the world’s largest third-party logistics providers (3PL), we provide a broad portfolio of logistics services, fresh produce sourcing and managed services for more than 124,000 customers and 76,000 active contract carriers through our integrated network of offices and more than 15,000 employees. In addition, the Company, our Foundation and our employees contribute millions of dollars annually to a variety of organizations. Headquartered in Eden Prairie, Minnesota, C.H. Robinson (CHRW) has been publicly traded since 1997. For more information, visit www.chrobinson.com.

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Forward-Looking Statements
Except for the historical information contained herein, the matters set forth in this release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to, such factors such as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; competition and growth rates within the third party logistics industry; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; changes in relationships with existing contracted truck, rail, ocean, and air carriers; changes in our customer base due to possible consolidation among our customers; our ability to successfully integrate the operations of acquired companies with our historic operations; risks associated with litigation, including contingent auto liability and insurance coverage; risks associated with operations outside of the United States; risks associated with the potential impact of changes in government regulations; risks associated with the produce industry, including food safety and contamination issues; fuel price increases or decreases, or fuel shortages; cyber-security related risks; the impact of war on the economy; changes to our capital structure; risks related to the elimination of LIBOR; and other risks and uncertainties detailed in our Annual and Quarterly Reports.

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Quarterly Business Segment Information
(unaudited, dollars in thousands)

 
 
NAST
 
Global Forwarding
 
All
Other and Corporate
 
Eliminations
 
Consolidated
Three Months Ended March 31, 2018
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
2,908,419

 
$
553,754

 
$
463,154

 
$
—

 
$
3,925,327

Intersegment revenues (1)
 
32,164

 
9,364

 
7,123

 
(48,651
)
 
—

   Total revenues
 
2,940,583

 
563,118

 
470,277

 
(48,651
)
 
3,925,327

Net revenues
 
438,402

 
123,037

 
64,486

 
—

 
625,925

Income from operations
 
179,637

 
8,221

 
3,727

 
—

 
191,585

Depreciation and amortization
 
6,331

 
8,909

 
9,001

 
—

 
24,241

Average headcount
 
7,298

 
4,767

 
3,023

 
—

 
15,088


 
 
NAST
 
Global Forwarding
 
All
Other and Corporate
 
Eliminations
 
Consolidated
Three Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
3,163,185

 
$
617,597

 
$
495,255

 
$
—

 
$
4,276,037

Intersegment revenues (1)
 
28,922

 
14,875

 
4,340

 
(48,137
)
 
—

   Total revenues
 
3,192,107

 
632,472

 
499,595

 
(48,137
)
 
4,276,037

Net revenues
 
459,706

 
144,031

 
67,746

 
—

 
671,483

Income from operations
 
188,244

 
29,788

 
976

 
—

 
219,008

Depreciation and amortization
 
6,288

 
8,753

 
9,197

 
—

 
24,238

Average headcount
 
7,401

 
4,736

 
3,092

 
—

 
15,229


 
 
NAST
 
Global Forwarding
 
All
Other and Corporate
 
Eliminations
 
Consolidated
Three Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
3,224,906

 
$
639,268

 
$
427,726

 
$
—

 
$
4,291,900

Intersegment revenues (1)
 
21,497

 
12,626

 
4,187

 
(38,310
)
 
—

   Total revenues
 
3,246,403

 
651,894

 
431,913

 
(38,310
)
 
4,291,900

Net revenues
 
499,463

 
134,101

 
60,480

 
—

 
694,044

Income from operations
 
223,893

 
23,835

 
(1,755
)
 
—

 
245,973

Depreciation and amortization
 
6,286

 
8,735

 
8,902

 
—

 
23,923

Average headcount
 
7,454

 
4,684

 
3,153

 
—

 
15,291


(1) Intersegment revenues represent the sales between our segments and are eliminated to reconcile to our consolidated results.



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NAST
 
Global Forwarding
 
All
Other and Corporate
 
Eliminations
 
Consolidated
Three Months Ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
3,050,247

 
$
677,125

 
$
410,536

 
$
—

 
$
4,137,908

Intersegment revenues (1)
 
26,060

 
11,478

 
7,222

 
(44,760
)
 
—

   Total revenues
 
3,076,307

 
688,603

 
417,758

 
(44,760
)
 
4,137,908

Net revenues
 
508,690

 
142,737

 
62,356

 
—

 
713,783

Income from operations
 
230,070

 
29,782

 
(4,335
)
 
—

 
255,517

Depreciation and amortization
 
6,385

 
8,751

 
9,191

 
—

 
24,327

Average headcount
 
7,396

 
4,664

 
3,183

 
—

 
15,243




FY 2018 Business Segment Information
(unaudited, dollars in thousands)
 
 
NAST
 
Global Forwarding
 
All
Other and Corporate
 
Eliminations
 
Consolidated
Twelve Months Ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
12,346,757

 
$
2,487,744

 
$
1,796,671

 
$
—

 
$
16,631,172

Intersegment revenues (1)
 
108,643

 
48,343

 
22,872

 
(179,858
)
 
—

   Total revenues
 
12,455,400

 
2,536,087

 
1,819,543

 
(179,858
)
 
16,631,172

Net revenues
 
1,906,261

 
543,906

 
255,068

 
—

 
2,705,235

Income from operations
 
821,844

 
91,626

 
(1,387
)
 
—

 
912,083

Depreciation and amortization
 
25,290

 
35,148

 
36,291

 
—

 
96,729

Average headcount
 
7,387

 
4,711

 
3,106

 
—

 
15,204


(1) Intersegment revenues represent the sales between our segments and are eliminated to reconcile to our consolidated results.




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Net Revenues by Service Line Information
(unaudited, dollars in thousands)

 
 
Three months ended
 
Twelve months ended
 
 
March 31,
2018
 
June 30,
2018
 
September 30,
2018
 
December 31,
2018
 
December 31,
2018
NAST
 
 
 
 
 
 
 
 
 
 
Truckload
 
$
312,952

 
$
325,005

 
$
362,115

 
$
375,289

 
$
1,375,361

LTL
 
110,916

 
118,176

 
121,438

 
116,195

 
466,725

Intermodal
 
6,217

 
9,101

 
8,178

 
8,483

 
31,979

Other
 
8,317

 
7,424

 
7,732

 
8,723

 
32,196

Total
 
$
438,402

 
$
459,706

 
$
499,463

 
$
508,690

 
$
1,906,261

 
 
 
 
 
 
 
 
 
 
 
Global Forwarding
 
 
 
 
 
 
 
 
 
 
Ocean
 
$
68,694

 
$
86,820

 
$
74,700

 
$
82,113

 
$
312,327

Air
 
26,037

 
28,722

 
28,228

 
28,051

 
111,038

Customs
 
20,655

 
20,793

 
23,305

 
23,762

 
88,515

Other
 
7,651

 
7,696

 
7,868

 
8,811

 
32,026

Total
 
$
123,037

 
$
144,031

 
$
134,101

 
$
142,737

 
$
543,906

 
 
 
 
 
 
 
 
 
 
 
Robinson Fresh
 
$
30,237

 
$
32,644

 
$
26,399

 
$
27,003

 
$
116,283

Managed Services
 
$
18,317

 
$
20,074

 
$
20,080

 
$
20,318

 
$
78,789

Other Surface Transportation
 
$
15,932

 
$
15,028

 
$
14,001

 
$
15,035

 
$
59,996

Total
 
$
625,925

 
$
671,483

 
$
694,044

 
$
713,783

 
$
2,705,235



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