MINNEAPOLIS--(BUSINESS WIRE)--Apr. 29, 2014-- C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (NASDAQ: CHRW), today reported financial results for the quarter ended March 31, 2014. Summarized financial results for the quarter ended March 31 are as follows (dollars in thousands, except per share data):

Our total net revenues decreased through the first two months of 2014 compared to the first two months of 2013. Our total net revenues increased significantly in March 2014 compared to March 2013 primarily due to growth in North American truckload net revenues.

Our truckload net revenues increased 0.5 percent in the first quarter of 2014 compared to the first quarter of 2013. Our truckload volumes increased approximately four percent in the first quarter of 2014 compared to the first quarter of 2013. Our North American truckload volumes increased approximately three percent. Volume growth was impacted by the capacity constraints caused by the many weather events across North America during the first quarter of 2014. Our truckload net revenue margin decreased in the first quarter of 2014 compared to the first quarter of 2013, due primarily to increased cost per mile. In North America, excluding the estimated impacts of the change in fuel, our average truckload rate per mile charged to our customers increased approximately 10 percent in the first quarter of 2014 compared to the first quarter of 2013. In North America, our truckload transportation costs increased approximately 12 percent, excluding the estimated impacts of the change in fuel.

Our less-than-truckload (“LTL”) net revenues increased 2.8 percent in the first quarter of 2014 compared to the first quarter of 2013. Our LTL net revenue growth rate slowed in the first quarter of 2014 compared to the first quarter of 2013 partially as a result of weather related issues. LTL net revenue margin decreased slightly in the first quarter of 2014 compared to the first quarter of 2013, primarily due to carrier price increases.

Our intermodal net revenues decreased 1.8 percent in the first quarter of 2014 compared to the first quarter of 2013. This was primarily due to a decline in volume partially offset by an increase in net revenue margin.

Our ocean transportation net revenues increased 2.6 percent in the first quarter of 2014 compared to the first quarter of 2013. This increase in net revenues was primarily due to volume increases partially offset by a decrease in net revenue margin, which was driven by market volatility and strong competition.

Our air transportation net revenues increased 4.1 percent in the first quarter of 2014 compared to the first quarter of 2013. This increase was primarily due to an increase in net revenue margin and increased volumes.

Our customs net revenues increased 8.4 percent in the first quarter of 2014 compared to the first quarter of 2013. This increase was primarily due to higher transaction volumes.

Other logistics services net revenues, which include transportation management services, warehousing, and small parcel, increased 8.0 percent in the first quarter of 2014 compared to the first quarter of 2013. This increase was primarily due to increases in both warehousing and management services.

Sourcing net revenues decreased 15.7 percent in the first quarter of 2014 compared to the first quarter of 2013. We continued to experience volume and net revenue declines from a large customer. We expect the revenue declines with this large customer to continue throughout 2014. Sourcing net revenue margins declined due to weather, a lack of product availability with some key commodities, and market volatility.

For the first quarter, operating expenses increased 4.6 percent to $300.3 million in 2014 from $287.0 million in 2013. Operating expenses as a percentage of net revenues increased to 65.7 percent in 2014 from 63.0 percent in 2013.

For the first quarter, personnel expenses increased 3.6 percent to $220.3 million in 2014 from $212.6 million in 2013. This was due to an increase in our average headcount of approximately six percent, partially offset by declines in expenses related to incentive plans that are designed to keep expenses variable with changes in net revenues and profitability.

For the first quarter, other selling, general, and administrative expenses increased 7.5 percent to $80.0 million in 2014 from $74.4 million in 2013. This change was primarily driven by an increase in our allowance for bad debt.

For the first quarter, investment and other (expense) income was an expense of $6.1 million in 2014 compared to an expense of $60,000 in the first quarter of 2013. The increase was primarily driven by the interest expense on our notes payable, issued during the third quarter of 2013 and used to fund the accelerated share repurchase agreements.

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 46,000 active customers through a network of 282 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 approximately 63,000 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, including 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; the impact of war on the economy; and other risks and uncertainties detailed in our Annual and Quarterly Reports.

Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update such statement to reflect events or circumstances arising after such date. All remarks made during our financial results conference call will be current at the time of the call and we undertake no obligation to update the replay.

Conference Call Information:
C.H. Robinson Worldwide First Quarter 2014 Earnings Conference Call
Wednesday, April 30, 2014, 8:30 a.m. Eastern Time
The call will be limited to 60 minutes, including questions and answers. We invite call participants to submit questions in advance of the conference call and we will respond to as many of the questions as we can in the time allowed. If time permits, we will accept live questions. To submit your question(s) in advance of the call, please email tim.gagnon@chrobinson.com.

Presentation slides and a simultaneous live audio webcast of the conference call may be accessed through the Investor Relations link on C.H. Robinson’s website at www.chrobinson.com
To participate in the conference call by telephone, please call ten minutes early by dialing: 1-877-941-0844
Callers should reference the conference ID, which is 4676571
Webcast replay available through Investor Relations link at www.chrobinson.com
Telephone audio replay available until 12:59 a.m. Eastern Time on May 2: 1-800-406-7325; passcode: 4676571#

Source: C.H. Robinson Worldwide, Inc.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding C.H. Robinson Worldwide Inc's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.