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Expeditors Reports First Quarter 2012 EPS of $.36 Per Share1

  2012 MAY 20 - (VerticalNews.com) -- Expeditors International of Washington, Inc. (NASDAQ:EXPD) announced net earnings attributable to shareholders of $76,707,000 for the first quarter of 2012, as compared with $91,232,000 for the same quarter of 2011, a decrease of (16)%. Net revenues for the first quarter of 2012 decreased (2)% to $446,571,000 as compared with $453,915,000 reported for the first quarter of 2011. Total revenues and operating income were $1,411,370,000 and $125,271,000 in the first quarter of 2012, as compared with $1,460,848,000 and $147,230,000 for the same quarter of 2011, decreases of (3)% and (15)%, respectively. Diluted net earnings attributable to shareholders per share for the first quarter were $.36, as compared with $.42 for the same quarter in 2011, a decrease of (14)%.

  "The announcement of our first quarter 2012 results could be viewed by some as anti-climactic given our earlier guidance," said Peter J. Rose, Chairman and Chief Executive Officer. "Our public comments on the state of the global economy these past six months foreshadowed the possibility that some volume weakness could develop in 2012 as compared with 2011. However, a 9% decline in year-over-year airfreight tonnages during the first quarter of 2012 was not what we would have predicted, even if we made predictions. Our largest customers are being very cautious about the amount of airfreight they are using this year. The 5% increase in airfreight shipments handled during the first quarter, despite this decline in tonnage, reinforces that our customers do continue to ship, however. Historically, March is a very significant airfreight month from a tonnage perspective. March 2012 was a notable exception. It is also an anomaly when we experience both a strong reduction in year-over-year airfreight tonnage and a margin contraction. Those who understand the nuances of this business will recognize that as a sign of what it is, a very atypical airfreight environment. We'd be remiss not to mention that these results also include the full accrual of the $5.5 million fine levied by the European Commission the last week of March. We will also take this opportunity to reiterate what we announced when the EC disclosed the fine. We disagree with this decision. As we said then, we did not enter into any agreement that affected customer pricing in any way," Rose went on to say.

  "We don't believe in making excuses at Expeditors. While we feel obligated to explain, we are not happy about these results. Our focus for the remainder of 2012 will be to aggressively expand our customer base and seek to extend our business reach with existing customers while implementing the kind of common sense cost control measures that we used in 2009. We will not abandon our core principles. We also understand that sustainable market share gains, like trust, must be earned and cannot be purchased. At the end of the day, it is only by meeting the needs of our customers that we demonstrate our value. Fortunately our people do just that," Rose concluded.

  Keywords: Industry, Air Delivery and Freight Service Companies, Expeditors International of Washington Inc..

  This article was prepared by VerticalNews Internet editors from staff and other reports. Copyright 2012, VerticalNews Internet via VerticalNews.com.