(Reuters) – C.H. Robinson beat Wall Street estimates for second-quarter profit on Wednesday, helped by the logistics firm’s efforts to rein in costs, sending its shares up nearly 8% in aftermarket trade.
North America freight companies have shifted their focus to beefing up margins as volumes remain low amid a long-drawn slump in demand.
C.H. Robinson’s operating expenses reduced 4.4%, while average employee headcount fell by 10% in the second quarter.
“Although we continue to fight through an elongated freight recession, we are winning and executing better at this point in the cycle,” CEO Dave Bozeman said in a statement.
The Minnesota-based company posted an adjusted income of $1.15 per share for its quarter ended June 30, compared with analysts’ average expectations of 96 cents, according to LSEG data.
Total revenue rose 1.4% to $4.5 billion, driven by higher pricing in its ocean services business.
(Reporting by Abhinav Parmar and Shivansh Tiwary in Bengaluru; Editing by Sriraj Kalluvila)
