MINNEAPOLIS--(BUSINESS WIRE)--Jan. 27, 2009--C.H. Robinson Worldwide, Inc. ("C.H. Robinson") (NASDAQ: CHRW), today reported financial results for the quarter ended December 31, 2008.

Summarized financial results for the quarter ended December 31 are as follows (dollars in thousands, except per share data):

           Three months ended                Twelve months ended

           December 31,                      December 31,

           2008         2007         %       2008         2007         % Change
                                     Change

Gross      $ 1,955,103  $ 1,952,022  0.2 %   $ 8,578,614  $ 7,316,223  17.3 %
revenues

Gross        344,160      322,754    6.6 %     1,374,963    1,243,778  10.5 %
profits

Operating    142,384      132,873    7.2 %     571,586      509,684    12.1 %
income

Net          88,881       85,254     4.3 %     359,177      324,261    10.8 %
income

Diluted    $ 0.52       $ 0.49       6.1 %   $ 2.08       $ 1.86       11.8 %
EPS

"We are pleased that despite the increasingly difficult economic environment, we were able to achieve double-digit gross profit and earnings growth in 2008. Our diverse mix of services, variable-cost business model, and motivated employees enabled us to continue to find opportunities in the marketplace and adapt to the challenging freight environment," said John P. Wiehoff, chairman and chief executive officer of C.H. Robinson.

Wiehoff continued, "Although we had solid results in the fourth quarter, gross profit per business day growth in our largest business, North American truckload transportation, deteriorated as the quarter progressed. On a per business day basis our North American truckload gross profits declined in December and have continued to decline so far in January 2009. The environment remains unpredictable, and we do not know whether our experience so far in January is a good indication of what the full first quarter or the year will bring. A sustained, slow freight environment is the most challenging for growth. While we are currently in a tough environment, we remain confident in our business model, our strategy, and our long-term market opportunity and growth goals."

Total Transportation gross profits increased 6.3 percent to $306.0 million in the fourth quarter of 2008 from $288.0 million in the fourth quarter of 2007. Our Transportation gross profit margin increased to 19.0 percent in 2008 from 17.7 percent in 2007 due to gross profit margin increases in several of our transportation businesses.

Our truck gross profits, which consist of truckload and less-than-truckload ("LTL") services, increased 3.1 percent in the fourth quarter of 2008. Our truckload volumes decreased approximately 4 percent. Our truckload gross profit margins increased due to lower cost of capacity. Although rates declined as the quarter progressed, on average our truckload rates were consistent with the fourth quarter of 2007. Our LTL shipment volumes increased approximately 10 percent. Our LTL gross profit margins also increased in the fourth quarter of 2008.

Our intermodal gross profit increase of 28.0 percent in the fourth quarter was driven by increased volumes and margin expansion, due to an increase in higher-margin transactional opportunities and cross selling with existing customers.

Our ocean transportation gross profits increased 56.3 percent in the fourth quarter of 2008 driven by increased volumes and margin expansion. Our previously disclosed acquisition of Transera International Holdings Ltd. ("Transera") on August 1, 2008, contributed approximately 36 percent to the overall increase. Our ocean volumes increased due to growth with existing customers and the addition of new customers. Our ocean gross profit margins increased due to lower cost of capacity.

Our air transportation gross profit decrease of 2.2 percent in the fourth quarter of 2008 was driven by decreased volumes, partially offset by slightly increased gross profit margins. Our air volumes decreased due to mode conversion to ocean transportation. Excluding Transera, our international air transportation business decreased 4.3 percent.

Miscellaneous transportation gross profits consist primarily of transportation management fees and customs brokerage fees. The increase of 15.3 percent in the fourth quarter was driven primarily by volume growth in management fees, customs brokerage, and other logistics services.

For the fourth quarter, Sourcing gross profits increased 12.9 percent to $26.1 million in 2008 from $23.1 million in 2007. This increase was driven primarily by growth in value-added and specialized products and services.

Our Information Services gross profits grew 3.1 percent in the fourth quarter of 2008. Our growth was driven by volume growth in local fleet card services, some of our carrier compliance services, and maintenance fees, offset by declines in our over the road fleet card, cash advance, and merchant services. Lower fuel prices also impacted our growth, as some of our merchant fees are based on a percentage of the total sale amount.

For the fourth quarter, operating expenses increased 6.3 percent to $201.8 million in 2008 from $189.9 million in 2007. This was due to an increase of 3.3 percent in personnel expenses and an increase of 15.8 percent in selling, general, and administrative expenses.

As a percentage of gross profits, total operating expenses decreased slightly to 58.6 percent in the fourth quarter of 2008 from 58.8 percent in the fourth quarter of 2007. This decrease was due to a decline in personnel expenses as a percentage of gross profits from 44.8 percent to 43.4 percent, offset partially by an increase in our selling, general, and administrative expenses as a percentage of gross profits. Expenses related to our restricted stock program and various other incentive plans are variable, based on growth in our earnings. Our slower earnings growth in the fourth quarter of 2008 compared to the fourth quarter of 2007 resulted in a decrease in expense related to some of these incentive plans. This contributed to our personnel expenses growing slower than our gross profits.

The increase in our selling, general, and administrative expenses was driven by several expense categories, including provision for doubtful accounts, claims, and occupancy.

Founded in 1905, C.H. Robinson Worldwide, Inc., is one of the largest non-asset based third party logistics companies in the world. C.H. Robinson is a global provider of multimodal transportation services and logistics solutions, currently serving over 32,000 customers through a network of 228 offices in North America, South America, Europe, and Asia. C.H. Robinson maintains one of the largest networks of motor carrier capacity in North America and works with over 50,000 transportation providers worldwide.

Except for the historical information contained herein, the matters set forth in this release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to such factors as changes in economic conditions such as the current recession and decreased consumer confidence, changes in market demand and pressures on the pricing for our services; competition and growth rates within the third party logistics industry; freight levels and availability of truck capacity or alternative means of transporting freight, and changes in relationships with existing truck, rail, ocean and air carriers; changes in our customer base due to possible consolidation among our customers; our ability to integrate the operations of acquired companies with our historic operations successfully; risks associated with litigation and insurance coverage; risks associated with operations outside of the U.S.; risks associated with the potential impacts of changes in government regulations; risks associated with the produce industry, including food safety and contamination issues; fuel shortages and the impact of war on the economy; and other risks and uncertainties detailed in our Annual and Quarterly Reports.

Conference Call Information:

C.H. Robinson Worldwide Fourth Quarter 2008 Earnings Conference Call

Tuesday, January 27, 2009 5:00 p.m. Eastern time

Live webcast available through Investor Relations link at www.chrobinson.com

Telephone access: 800-240-2430

Webcast replay available through February 11, 2009; Investor Relations link at www.chrobinson.com

Telephone audio replay available until 12:59 a.m. Eastern Time on January 30, 2009: 800-405-2236;

passcode: 11124369#

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

(In thousands, except per share data)

                              Three months ended        Twelve months ended

                              December 31,              December 31,

                              2008         2007         2008         2007

Gross Revenues:

Transportation                $ 1,607,090  $ 1,622,533  $ 7,129,611  $ 5,971,784

Sourcing                        335,963      317,799      1,398,253    1,298,913

Information Services            12,050       11,690       50,750       45,526

Total gross revenues            1,955,103    1,952,022    8,578,614    7,316,223

Gross Profits:

Transportation

Truck                           256,043      248,442      1,030,070    949,277

Intermodal                      11,788       9,209        43,618       38,670

Ocean                           18,641       11,924       62,094       43,530

Air                             9,155        9,361        35,390       31,315

Miscellaneous                   10,410       9,027        41,407       35,240

Total transportation            306,037      287,963      1,212,579    1,098,032

Sourcing                        26,073       23,101       111,634      100,220

Information Services            12,050       11,690       50,750       45,526

Total gross profits             344,160      322,754      1,374,963    1,243,778

Operating costs and
expenses:

Personnel expenses              149,216      144,486      601,822      567,986

Selling, general, and           52,560       45,395       201,555      166,108
administrative expenses

Total operating expenses        201,776      189,881      803,377      734,094

Income from operations          142,384      132,873      571,586      509,684

Investment and other income     1,023        3,337        6,801        13,830

Income before provision for     143,407      136,210      578,387      523,514
income taxes

Provision for income taxes      54,526       50,956       219,210      199,253

Net income                    $ 88,881     $ 85,254     $ 359,177    $ 324,261

Net income per share (basic)  $ 0.53       $ 0.50       $ 2.12       $ 1.90

Net income per share          $ 0.52       $ 0.49       $ 2.08       $ 1.86
(diluted)

Weighted average shares         167,962      169,591      169,056      170,493
outstanding (basic)

Weighted average shares         171,433      174,269      172,733      174,040
outstanding (diluted)

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(In thousands)

                                          December 31,  December 31,

                                          2008          2007

Assets

Current assets:

Cash and cash equivalents                 $ 494,743     $ 338,885

Available-for-sale securities               2,644         115,842

Receivables, net                            828,884       911,780

Other current assets                        21,600        22,649

Total current assets                        1,347,871     1,389,156

Property and equipment, net                 104,088       101,665

Intangible and other assets                 363,762       320,486

                                          $ 1,815,721   $ 1,811,307

Liabilities and stockholders' investment

Current liabilities:

Accounts payable and outstanding checks   $ 568,758     $ 618,195

Accrued compensation                        93,431        101,926

Other accrued expenses                      35,464        37,498

Total current liabilities                   697,653       757,619

Long term liabilities                       10,847        11,439

Total liabilities                           708,500       769,058

Total stockholders' investment              1,107,221     1,042,249

                                          $ 1,815,721   $ 1,811,307

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited)

(In thousands, except operational data)

                                                      Twelve months ended

                                                      December 31,

                                                      2008          2007

Operating activities:

Net income                                            $ 359,177     $ 324,261

Stock-based compensation                                20,804        38,002

Depreciation and amortization                           31,164        27,366

Provision for doubtful accounts                         14,329        6,745

Other non-cash expenses, net                            3,206         (8,606   )

Net changes in operating elements                       18,899        (79,338  )

Net cash provided by operating activities               447,579       308,430

Investing activities:

Net property additions                                  (23,748  )    (43,713  )

Cash paid for acquisitions, net                         (59,661  )    (22,220  )

Purchases of available-for-sale securities              (136,954 )    (204,020 )

Sales/maturities of available-for-sale securities       251,074       214,299

Other assets, net                                       769           (68      )

Net cash provided by (used for) investing activities    31,480        (55,722  )

Financing activities:

Repayment of acquired line of credit                    (9,383   )    -

Net repurchases of common stock                         (177,519 )    (153,583 )

Excess tax benefit from stock based compensation        12,057        16,668
plans

Cash dividends                                          (151,195 )    (125,183 )

Net cash used for financing activities                  (326,040 )    (262,098 )

Effect of exchange rates on cash                        2,839         (317     )

Net change in cash and cash equivalents                 155,858       (9,707   )

Cash and cash equivalents, beginning of period          338,885       348,592

Cash and cash equivalents, end of period              $ 494,743     $ 338,885

                                                      As of December 31

                                                      2008          2007

Operational Data:

Employees                                               7,961         7,332

Branches                                                228           218