MINNEAPOLIS, Oct 26, 2010 (BUSINESS WIRE) --

C.H. Robinson Worldwide, Inc. ("C.H. Robinson") (NASDAQ: CHRW), today reported financial results for the quarter ended September 30, 2010.

Summarized financial results for the quarter ended September 30 are as follows (dollars in thousands, except per share data):

Our Transportation revenue increased 29.6 percent in the third quarter of 2010. Transportation net revenues increased 8.6 percent to $336.6 million in the third quarter of 2010 from $309.8 million in the third quarter of 2009. Our Transportation net revenue margin decreased to 16.6 percent in 2010 from 19.8 percent in 2009.

Our truck net revenues, which consist of truckload and less-than-truckload ("LTL") services, increased 6.0 percent in the third quarter of 2010. Our truckload volumes increased approximately 14 percent in the third quarter of 2010 compared to the third quarter of 2009. Our truckload net revenue margins decreased due to higher transportation costs and higher fuel prices, partially offset by increased pricing to our customers. Excluding the estimated impacts of the change in fuel, our truckload pricing to our customers increased approximately eight percent in the third quarter of 2010 compared to the third quarter of 2009. Our truckload transportation costs increased approximately 12 percent, excluding the estimated impacts of fuel. Our LTL net revenues increased approximately 18 percent. The increase was driven by an increase in total shipments of approximately 17 percent and increased pricing, partially offset by a small decline in our net revenue margin.

Our intermodal net revenue increase of 10.0 percent in the third quarter of 2010 was driven by increased volume.

Our ocean transportation net revenues increased 27.3 percent in the third quarter of 2010, driven by large volume increases. We experienced a net revenue margin decline due to increased cost of capacity, which was partially offset by increased pricing to our customers.

Our air transportation net revenue increased 37.8 percent in the third quarter of 2010 due to higher volumes.

Other logistics services net revenues consist primarily of transportation management fees and customs brokerage fees. The increase of 25.2 percent was driven primarily by an increase in management fees.

For the third quarter, our Sourcing revenues increased 0.1 percent, including the previously announced acquisition of Rosemont Farms, Inc. ("Rosemont") on September 15, 2009. Sourcing net revenues increased 3.4 percent to $31.9 million in 2010 from $30.9 million in 2009. Excluding the Rosemont acquisition, Sourcing net revenues decreased approximately 11 percent in the third quarter of 2010, primarily due to decreased volumes with a large customer.

Our Information Services revenues increased 18.7 percent in the third quarter of 2010 due to an increase in transactions and increases in some fees that are impacted by fuel prices.

For the third quarter, operating expenses increased 9.3 percent to $216.2 million in 2010 from $197.8 million in 2009. This was due to an increase of 8.9 percent in personnel expense and an increase of 10.8 percent in other selling, general, and administrative expenses. Personnel expenses related to our restricted stock program and various other incentive plans increased as many are variable, based on growth in our earnings. We also increased average headcount by three percent in the quarter. A significant portion of the increase in our other selling, general, and administrative expenses was related to our acquisition of Rosemont. As a percentage of net revenues, total operating expenses increased slightly to 56.5 percent in the third quarter of 2010 from 56.1 percent in the third quarter of 2009.

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 35,000 customers through a network of 232 offices in North America, South America, Europe, Asia, Australia, and the Middle East. C.H. Robinson maintains one of the largest networks of motor carrier capacity in North America and works with over 47,000 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 strength of the current recovery and uncertain consumer demand; 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 increasing costs 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 prices and availability; and the impact of war on the economy; and other risks and uncertainties detailed in our Annual and Quarterly Reports.

SOURCE: C.H. Robinson Worldwide, Inc.