CHRW: C.H. Robinson Keeps on Trucking

We have written many times about why we believe the transportation companies that act more as brokers will perform better than their asset-owning peers.  And yesterday, the juxtaposition between the UPS disappointment and the C.H. Robinson blowout offered a case in point. According to CH Robinson:

Total Transportation gross profits increased 19.5 percent to $246.2 million in the fourth quarter of 2006 from $205.9 million in the fourth quarter of 2005. Our Transportation gross profit margin increased to 18.3 percent in 2006 from 15.7 percent in 2005.

Pretty spectacular given the cautious guidance and reports from both asset-based truckers and non-asset-based peer Landstar (LSTR - Annual Report).

Disclosure: At time of publication, author is short Landstar (LSTR - Annual Report) put options.

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Topics: CH Robinson Worldwide (CHRW), Landstar Systems (LSTR), Stock Market, United Parcel Service (UPS), YRC Worldwide (YRCW) | RSS

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