The fiscal performance of 3PL giant C.H. Robinson appears to be struggling, with little positive news in their fourth-quarter earnings report for 2023. Despite the appointment of a new CEO and President, David Bozeman, the company saw a decline in income from operations to $107.4 million, down 34.5% from the previous year and even lower than the third quarter figure of $113.5 million. Gross profits also decreased to $609.3 million, a 20% drop year-over-year. Investors reacted negatively to the earnings report, with the stock price falling 3.77% to $80.92.
Amidst the disappointing financial results, C.H. Robinson announced a change in leadership for its North American Surface Transportation unit, naming Michael Castagnetto as the new president. The company reported decreased revenues and profits for NAST, with income from operations down 41% to $96 million. Adjusted gross profits for all modes of transportation also declined, with truckload profits dropping to $243.9 million and LTL transportation slightly lower at $136.6 million.
CEO Bozeman acknowledged the challenging market environment the company faced, citing weak freight demand and excess carrier capacity. The shift to more spot market purchases was described as opportunistic, with plans to adjust as needed based on market conditions. Despite the tough market conditions, C.H. Robinson reported a 17% improvement in productivity within the North American Surface Transportation sector. Looking ahead, the company remains focused on increasing efficiency and productivity to navigate the competitive market landscape.
