Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced quarterly total revenues and operating income of $1,307,389,000 and $119,205,000 as compared with $1,446,582,000 and $107,616,000 for the same quarter of 2007, a decrease of 10% and an increase of 11%, respectively. Net earnings were $77,728,000 for the fourth quarter of 2008, compared with $70,057,000 for the same quarter of 2007, also an increase of 11%. Net revenues for the fourth quarter of 2008 increased 6% to $402,481,000 as compared with $379,441,000 reported for the fourth quarter of 2007. Diluted net earnings per share for the fourth quarter were $.36 as compared with $.32 for the same quarter in 2007, an increase of 13%. The Company also reported that same store net revenues and operating income increased 6% and 11%, respectively, for the fourth quarter of 2008 when compared with 2007.

For the year ended December 31, 2008, total revenues and operating income were $5,633,878,000 and $473,136,000 compared with $5,235,171,000 and $423,400,000 for the same period in 2007, increases of 8% and 12% respectively. Net earnings rose to $301,014,000 from $269,154,000 in 2007, an increase of 12%. Net revenues for the year increased to $1,603,261,000 from $1,452,961,000 for 2007, up 10%. Diluted net earnings per share for the year 2008 were $1.37 as compared with $1.21 for the same period of 2007, a 13% increase. Same store net revenues and operating income increased 10% and 12%, respectively, for the year ended December 31, 2008, when compared with the same period of 2007.

“Given the incessant tales of woe emanating from Wall Street these days, we hope the consistency and stability projected by these results will be reassuring to our employees, to our customers and to our shareholders,” said Peter J. Rose, Chairman and Chief Executive Officer. “The efforts to make this fourth quarter a success started back in the 2008 first quarter, when we banned the internal use of the “R” word as an excuse for poor performance. There was no magic formula. We simply executed. We increased productivity through on-going process improvement initiatives; we reduced our exposure where we struggled to make money; we cut back on discretionary overhead expenses, like travel and entertainment; and we were increasingly selective with our service provider allocations. This resulted in expanded net revenue yields and higher operating margins, all while offering market-competitive rates and uncompromising service to our customers. We also expanded market share through aggressively focusing on new products, like Sea-Air, new customers and new market vertical opportunities," Rose commented.

“Looking forward to 2009, we definitely understand that we have our work cut out for us. That said, we also have a lot going for us: a strong balance sheet with no debt and nearly three-quarters of a billion dollars in cash; a successful, proven business model that has worked in slow times as well as in boom times; and most important of all, the best trained and best motivated employees in the business - all of which are reinforced by our performance-based culture. Unlike the banking industry, however, our people understand that without real cash profits, there can be no real cash bonuses. Our incentive based bonus system, tied to a strictly GAAP definition of cumulative operating income, keeps our people focused and grounded. They also understand that the most effective way of perpetuating profits is to keep our existing customers satisfied while aggressively attracting new business. With this combination of factors working for us, we’re confident that we’ll find ways to turn challenges into opportunities. We always have,” Rose concluded.

Expeditors is a global logistics company headquartered in Seattle, Washington. The company employs trained professionals in 181 full service offices, 68 satellite locations and 4 international service centers located on six continents linked into a seamless worldwide network through an integrated information management system. Services include air and ocean freight forwarding, vendor consolidation, customs clearance, marine insurance, distribution and other value added international logistics services.


Expeditors International of Washington, Inc.
Financial Highlights
Three months and Year ended
December 31, 2008 and 2007
Unaudited
(in 000's of US dollars except share data)

 
 
 
 


Three months ended December 31,


Year ended December 31,



2008

 

2007


% Inc. (Dec.)

2008

 

2007


% Inc.

Revenues
$ 1,307,389
$ 1,446,582
-10 %
$ 5,633,878
$ 5,235,171
8 %
Net revenues
$ 402,481
$ 379,441
6 %
$ 1,603,261
$ 1,452,961
10 %
Operating income
$ 119,205
$ 107,616
11 %
$ 473,136
$ 423,400
12 %
Net earnings
$ 77,728
$ 70,057
11 %
$ 301,014
$ 269,154
12 %
Diluted earnings per share
$ .36
$ .32
13 %
$ 1.37
$ 1.21
13 %
Basic earnings per share
$ .37
$ .33
12 %
$ 1.41
$ 1.26
12 %
Diluted weighted average shares outstanding

216,925,452


221,192,441




219,170,003


221,799,868



Basic weighted average shares outstanding

211,952,384


213,095,428




212,755,946


213,314,761



There were no office openings in the fourth quarter of 2008.

Certain portions of this release contain forward-looking statements which are based on certain assumptions and expectations of future events that are subject to risks and uncertainties. Actual future results and trends may differ materially from historical results or those projected in any forward-looking statements depending on a variety of factors including, but not limited to, our ability to maintain consistent and stable operating results, future success of our business model, ability to perpetuate profits, changes in customer demand for Expeditors’ services caused by a general economic slow-down, inventory build-up, decreased consumer confidence, volatility in equity markets, energy prices, political changes, or the unpredictable acts of competitors and other risks, risk factors and uncertainties detailed in our Annual and Quarterly Reports filed with the Securities and Exchange Commission.

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