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Expeditors Reports Fourth Quarter 2011 EPS of $.43 Per Share 1

Dépèche transmise le 21 février 2012 par Business Wire

SEATTLE--(BUSINESS WIRE)--Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced net earnings attributable to shareholders of $92,843,000 for the fourth quarter of 2011, as compared with $96,502,000 for the same quarter of 2010, a decrease of (4)%. Net revenues for the fourth quarter of 2011 increased 5% to $476,155,000as compared with $453,362,000 reported for the fourth quarter of 2010. Total revenues and operating income were $1,501,914,000and $155,064,000in 2011, as compared with $1,582,135,000 and $148,572,000 for the same quarter of 2010, a decrease of (5)% and an increase of 4%, respectively. Diluted net earnings attributable to shareholders per share for the fourth quarter were $.43, as compared with $.45 for the same quarter in 2010, a decrease of (4)%.

“From a strategic perspective, our 2011 fourth quarter financial results showed all the things we think are important”

For the year ended December 31, 2011, net earnings attributable to shareholders was $385,679,000, as compared with $344,172,000 in 2010, an increase of 12%. Net revenues for the year increased to $1,896,477,000 from $1,692,786,000 for 2010, up 12%. Total revenues and operating income for the year were $6,150,498,000 and $618,327,000 in 2011, as compared with $5,967,573,000 and $547,230,000 for the same period in 2010, increases of 3% and 13%, respectively. Diluted net earnings attributable to shareholders per share for the year ended December 31, 2011 were $1.79, as compared with $1.59 for the same period of 2010, an increase of 13%.

“From a strategic perspective, our 2011 fourth quarter financial results showed all the things we think are important,” said Peter J. Rose, Chairman and Chief Executive Officer. “Operating income as a percentage of net revenue, at 32.6%, remained well above 30% for the seventh straight quarter while salaries as a percentage of net revenue were very much in line with our historical expectations. All in all, we think the things we can control most, we controlled best. From a tactical perspective, however, we would like to have seen stronger freight volumes as the customary real peak season surge never materialized. The lack of a peak season created irregular demand throughout the quarter. While this resulted in some intermittent spot buying opportunities in both the air and ocean freight markets, ultimately they were not sufficient to compensate for relatively weaker freight demand. Despite this quarters unpredictable shipping patterns, we still managed to grow both net revenue and operating income 5% and 4% respectively. That's something we take great comfort in. For the year ended 2011, net revenue and operating income increased 12% and 13% respectively. That is the kind of annual performance we don't feel particularly compelled to apologize for…particularly in these times,” Rose continued.

“Our third quarter 2011 earnings release highlighted our concerns about global trends for the remainder for 2011 and 2012. While 2011 was a record year, and we are generally optimistic about 2012, the underlying flow of goods both in the global economy and throughout our network in January still give us some cause to reiterate those concerns in the near term. That said, given the outstanding talents and abilities of our people and the support of both our customers and service providers, we remain very confident that we have the wherewithal to successfully address any near term challenges that may occur by staying true to our proven, long-term values and objectives,” concluded Rose.

Expeditors is a global logistics company headquartered in Seattle, Washington. The company employs trained professionals in 185 full-service offices and 64 satellite locations 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.

¹ Diluted earnings attributable to shareholders per share.

NOTE: See Disclaimer on Forward-Looking Statements on the following page of this release.

Expeditors International of Washington, Inc.
4th Quarter 2011 Earnings Release, February 21, 2012

Financial Highlights for the Three months and Years ended December 31, 2011 and 2010 (Unaudited)
(in 000's of US dollars except share data)

	Three months ended
	December 31,					Years ended December 31,
					%
					Increase					%
	2011		2010		(Decrease)	2011		2010		Increase
Revenues	$	1,501,914	$	1,582,135	(5)%	$	6,150,498	$	5,967,573	3%
Net revenues	$	476,155	$	453,362	5%	$	1,896,477	$	1,692,786	12%
Operating income	$	155,064	$	148,572	4%	$	618,327	$	547,230	13%
Net earnings attributable to shareholders	$	92,843	$	96,502	(4)%	$	385,679	$	344,172	12%
Diluted earnings attributable to shareholders	$	.43	$	.45	(4)%	$	1.79	$	1.59	13%
Basic earnings attributable to shareholders	$	.44	$	.45	(2)%	$	1.82	$	1.62	12%
Diluted weighted average shares outstanding		214,159,723		216,587,468			215,033,580		216,446,656
Basic weighted average shares outstanding		211,988,482		212,217,035			212,117,511		212,283,966

	Employee headcount as of
	December 31,
	2011	2010
North America	4,666	4,400
Asia Pacific	4,083	3,864
Europe and Africa	2,262	2,074
Middle East	1,250	1,169
South America	645	607
Information Systems	558	559
Corporate	228	197
Total	13,692	12,870

	Year-over-year percentage
	increase (decrease) in:
		Ocean freight
	Airfreight kilos	FEU
2011
October	(14)%	2%
November	(6)%	1%
December	(9)%	7%
Quarter	(10)%	3%

During the fourth quarter of 2011, the Company closed one satellite office in Detroit-Ambassador Bridge, United States.

Disclaimer on Forward-Looking Statements:

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, including comments on future ability to maintain operating income as a percentage of net revenue over 30%, ability to benefit in the future from spot buying opportunities, ability to grow net revenue and operating income, changes in consumer confidence in freight volumes, and ability to succeed in 2012, both from a near and long-term perspective. 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, customers’ inventory build-up, decreased consumer confidence, volatility in equity markets, energy prices, political changes, regulatory actions or changes or the unpredictable acts of competitors and other risks, risk factors and uncertainties detailed in our Annual Report as updated by our reports on Form 10-Q, filed with the Securities and Exchange Commission.

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)

	December 31,			December 31,
	2011			2010
Assets
Current Assets:
Cash and cash equivalents	$	1,294,356		$	1,084,465
Short-term investments	472			524
Accounts receivable, net	934,752			1,003,884
Deferred Federal and state income taxes	10,415			8,706
Other current assets	46,888			42,776
Total current assets	2,286,883			2,140,355
Property and equipment, net	538,806			498,648
Goodwill, net	7,927			7,927
Other intangibles, net	2,630			3,716
Other assets, net	30,581			28,533
	$	2,866,827		$	2,679,179
Liabilities and Equity
Current Liabilities:
Accounts payable	606,628			652,161
Accrued expenses, primarily salaries and related costs	169,445			177,869
Federal, state and foreign income taxes	20,072			31,948
Total current liabilities	796,145			861,978
Deferred Federal and state income taxes	60,613			69,047
Commitments and contingencies
Shareholders’ Equity:
Preferred stock; none issued	—			—
Common stock, par value $.01 per share; issued and outstanding 212,003,662 shares at December 31, 2011 and 212,047,774 shares at December 31, 2010	2,120			2,120
Additional paid-in capital	13,260			13,412
Retained earnings	1,991,222			1,717,249
Accumulated other comprehensive (loss) income	(2,964		)	8,125
Total shareholders’ equity	2,003,638			1,740,906
Noncontrolling interest	6,431			7,248
Total equity	2,010,069			1,748,154
	$	2,866,827		$	2,679,179

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
(In thousands, except share data)
(Unaudited)

	Three months ended						Twelve months ended
	December 31,						December 31,
	2011			2010			2011			2010
Revenues:
Airfreight services	$	705,744		$	778,009		$	2,893,474		$	2,821,828
Ocean freight and ocean services		441,102			481,263			1,878,595			1,955,400
Customs brokerage and other services		355,068			322,863			1,378,429			1,190,345
Total revenues		1,501,914			1,582,135			6,150,498			5,967,573
Operating Expenses:
Airfreight consolidation		534,159			604,309			2,193,122			2,181,598
Ocean freight consolidation		333,567			379,250			1,443,170			1,569,877
Customs brokerage and other services		158,033			145,214			617,729			523,312
Salaries and related costs		247,917			237,822			993,358			894,132
Rent and occupancy costs		20,578			19,988			84,665			77,209
Depreciation and amortization		9,146			9,310			36,776			36,900
Selling and promotion		10,447			9,593			38,974			32,055
Other		33,003			28,077			124,377			105,260
Total operating expenses		1,346,850			1,433,563			5,532,171			5,420,343
Operating income		155,064			148,572			618,327			547,230

Interest income		2,715			2,064			10,235			7,002
Interest expense		(248	)		(198	)		(970	)		(576	)
Other, net		(2,330	)		1,181			10,436			10,412
Other income (expense), net		137			3,047			19,701			16,838
Earnings before income taxes		155,201			151,619			638,028			564,068
Income tax expense		62,061			55,171			251,785			219,863
Net earnings		93,140			96,448			386,243			344,205
Less net earnings (losses) attributable to the noncontrolling interest		297			(54	)		564			33
Net earnings attributable to shareholders	$	92,843		$	96,502		$	385,679		$	344,172
Diluted earnings attributable to shareholders per share	$	.43		$	.45		$	1.79		$	1.59
Basic earnings attributable to shareholders per share	$	.44		$	.45		$	1.82		$	1.62
Dividends declared and paid per common share	$	.25		$	.20		$	.50		$	.40
Weighted average diluted shares outstanding		214,159,723			216,587,468			215,033,580			216,446,656
Weighted average basic shares outstanding		211,988,482			212,217,035			212,117,511			212,283,966