C.H. Robinson Worldwide, Inc. (NASDAQ: CHRW) is a Fortune 500 third-party logistics provider which provides domestic and international freight transportation and logistics services.
C.H. Robinson Worldwide, Inc. ( C.H. Robinson) is a third party logistics company. The Company provides freight transportation services and logistics solutions to companies of all sizes, in a variety of industries. During the year ended December 31, 2010, it handled approximately 9.2 million shipments for more than 36,000 customers. It operates through a network of 231 offices, which it call branches, in North America, Europe, Asia, South America, Australia, and the Middle East. As a part of its transportation services, it provides a range of value-added logistics services, such as supply chain analysis, freight consolidation, core carrier program management, and information reporting. In addition to multimodal transportation services, it offers two other services: sourcing services (Sourcing) and fee-based information services (Information Services). The Sourcing business is primarily the buying, selling, and marketing of fresh produce. Information Services consisted of a C.H. Robinson subsidiary, T-Chek Systems, Inc. (T-Chek).
Multimodal Transportation and Logistics Services
C.H. Robinson provides freight transportation and related logistics and supply-chain services. Its services range from commitments on a specific shipment to much more comprehensive and integrated relationships. It provides transportation and logistics services, such as Truckload, Less Than Truckload (LTL), Intermodal, Ocean, Air and Other Logistics Services. Through contracts with motor carriers, it has access to dry vans, temperature controlled vans, and flatbeds. It also offers time-definite and expedited truck transportation. It consolidates partial shipments for several customers into full truckloads. LTL transportation involves the shipment of small packages and single or multiple pallets of freight, up to and including full trailer load freight. The intermodal transportation service is the shipment of freight in trailers or containers by a combination of truck and rail. Ocean consolidates shipments, determine routing, select ocean carriers, contract for ocean shipments, provide for local pickup and delivery of shipments, and arrange for customs clearance of shipments, including the payment of duties. Air provides door-to-door service as a full-service international and domestic air freight forwarder. Other Logistics Services provides fee-based transportation management services, customs brokerage, warehousing services, and other services.
Sourcing
The Sourcing customer base includes multi-store grocery retailers, restaurant chains, and foodservice providers, and growers. The Sourcing services have expanded to include forecasting and replenishment, brand management, and category development services. It has various national and regional branded produce programs, including both in-house brands and national licensed brands. These programs contain a variety of fresh bulk and value added fruits and vegetables.
Information Services
T-Chek’s customers are primarily motor carriers and truck stop chains. T-Chek provides its customers with fuel management services, funds transfer, spend management reporting, driver payroll services, permits and online access to customized business intelligence. Information Services accounted for approximately 4% of net revenues during 2010.
C.H. Robinson continued to expand its logistics capabilities in the late 1990s. In 1995 the company entered the full-service logistics market through the formation of C.H. Robinson Logistics. This new division focused on developing and managing the logistics operations of customers throughout the entire supply chain. Two years later, the company entered the burgeoning market for expedited freight transportation, focusing on full trailerload shipments, through another new division, CHR-Ex.
At this time, the company remained entirely owned by current and former employees. With a number of the shareholders wishing to cash in at least part of their stakes, the company went public in October 1997. An initial public offering that month of about 25 percent of the company, or 10.6 million common shares, sold for $18 per share (which exceeded the expected price of $15 to $17) and generated about $190 million for the 101 people who sold shares. The initial market value of the company, which was at this time renamed C.H. Robinson Worldwide Inc. to reflect its increased international profile, totaled $743 million. Shares began trading on the NASDAQ under the symbol CHRW. Gross revenues for 1997 reached $1.79 billion, while net revenues amounted to $206 million, a 15.1 percent increase over the previous year. (Net revenues were considered by the company to be a more accurate gauge of performance than gross revenues, as they deducted from gross revenues the cost of the transportation contracted for by the company and the purchase price of the products sourced by the company.) Overseas markets accounted for 16 percent of revenues in 1997.
Sid Verdoorn, CEO of the firm since 1977, was named to the additional post of chairman in 1998. John P. Wiehoff, who was named senior vice-president and CFO in July 1998, was promoted to president of the company in December 1999. The leaders initiated a string of acquisitions in 1998, as C.H. Robinson continued to seek opportunities for growth and as the transportation industry entered a period of heightened consolidation. During 1998 two acquisitions were completed: Preferred Translocation Systems, a non-asset-based third-party logistics firm specializing in partial truckloads; and Comexter Group, an Argentinean firm specializing in South American transportation, freight forwarding, trading, and customs brokering. Another overseas acquisition, that of Norminter S.A., was consummated the following year. Based in Caen, France, Norminter was a non-asset-based third-party logistics company with offices in France, Germany, Spain, and the United Kingdom. Also in 1999, C.H. Robinson acquired Vertex Transportation Inc., which was based in East Rochester, New York, and provided third-party logistics services throughout North America. The largest of this string of acquisitions came in December 1999 when C.H. Robinson paid about $136 million in cash and stock for American Backhaulers, Inc., a privately held logistics firm based in Chicago. American Backhaulers specialized in over-the-road transportation services and had annual gross revenues of about $285 million. In August 2000 C.H. Robinson entered a new segment of the market through the purchase of Brooklyn Center, Minnesota-based Trans-Consolidated Inc., which was a third-party logistics firm specializing in refrigerated partial truckload shipments for perishable food manufacturers.
Results for 2000 highlighted the rapid pace of C.H. Robinson's growth. The gross revenues figure of $2.88 billion represented a 27 percent increase over the previous year, and the net revenues of $419.3 million were a 43 percent gain over the $293.3 million total of 1999. Looking to the new century, the company was aiming to continue to increase its net revenues by at least 15 percent each year. Strategies to achieve this growth included the development of customer-specific logistics solutions, rapid growth in the partial truckload and short-haul sectors, the addition of more domestic branches and the expansion of intracontinental distribution networks, and an increased use of technology to aid in communication with customers and to improve efficiency. With no debt, strong cash flow, and a motivated workforce that continued to own the bulk of the company stock, C.H. Robinson appeared likely to maintain and solidify its position in the rapidly growing third-party logistics industry.
Principal Subsidiaries: C.H. Robinson International, Inc.; C.H. Robinson Venezuela, C.A.; C.H. Robinson de Mexico, S.A. de C.V.; C.H. Robinson Company (Canada) Ltd.; C.H. Robinson Company; C.H. Robinson Company, Inc.; CHR Aviation, LLC; Daystar-Robinson, Inc.; Fresh 1 Marketing, Inc.; C.H. Robinson Worldwide-LTL, Inc.; Robinson Holding Company; C.H. Robinson Company LP (99%); Wagonmaster Transportation Co.; Robinson Europe, S.A. (France); Robinson Italia S.r.L (Italy; 95%); C.H. Robinson Poland Sp. Zo.o; Comexter Robinson S.A. (Argentina); Comexter Trading Company; Comexter Cargo, Inc.; Robinson Europe (France); C.H. Robinson (UK) Limited; Robinson France SARL; Norminter Iberica (Spain; 98%); E.G.C. SARL (France); T.E.A. 100% Payment & Logistics Services, Inc.; T-Chek Systems, Inc.; Robinson Logistica Do Brasil Ltda. (Brazil).
Principal Competitors: Ryder System, Inc.; GeoLogistics Corporation; Exel plc; BAX Global Inc.; EGL, Inc.; Schneider National, Inc.; CNF Inc.; GATX Corporation; CSX Corporation; FedEx Corporation; Fritz Corporation.
OVERALL
Beta: 0.77
Market Cap (Mil.): $13,062.38
Shares Outstanding (Mil.): 162.97
Annual Dividend: 1.16
Yield (%): 1.45
FINANCIALS
CHRW.OQ Industry Sector
P/E (TTM): 33.22 12.21 17.05
EPS (TTM): 12.88 -- --
ROI: 34.33 5.67 3.26
ROE: 34.93 6.87 5.84
Statistics:
Public Company
Incorporated: 1905 as C.H. Robinson Company
Employees: 3,677
Sales: $2.88 billion (2000)
Stock Exchanges: NASDAQ
Ticker Symbol: CHRW
NAIC: 488510 Freight Transportation Arrangement; 422480 Fresh Fruit and Vegetable Wholesalers; 541614 Process, Physical Distribution, and Logistics Consulting Services
Key Dates:
1905: Charles H. Robinson joins with Nash Brothers to form a partnership, C.H. Robinson Company, to ship produce to customers in the Red River Valley.
1913: With end of partnership, Nash Finch Company (successor of Nash Brothers) gains sole ownership of C.H. Robinson Co.
Early 1940s:Company is divided in two, with one company owned by its employees and the other owned by Nash Finch.
Mid-1960s:The two successor firms are consolidated under the name C.H. Robinson Co., with Nash Finch owning about 25 percent and employees the remainder.
1976: Nash Finch's shares are bought out and the firm becomes entirely employee owned.
1980: U.S. government deregulates the transportation industry; C.H. Robinson responds by promoting itself as a contract carrier for virtually any shippable product.
1988: Company enters the intermodal business.
1992: Freight forwarder C.S. Greene International is acquired.
1997: Company goes public and changes its name to C.H. Robinson Worldwide, Inc.
1998: Preferred Translocation Systems and Comexter Group are acquired.
1999: Three acquisitions are completed: Norminter S.A., Vertex Transportation Inc., and American Backhaulers, Inc.
2000: Trans-Consolidated Inc. is acquired, marking C.H. Robinson's entry into a new segment, refrigerated partial truckload shipments for perishable food manufacturers.
OVERALL
Beta: 0.77
Market Cap (Mil.): $13,062.38
Shares Outstanding (Mil.): 162.97
Annual Dividend: 1.16
Yield (%): 1.45
FINANCIALS
CHRW.OQ Industry Sector
P/E (TTM): 33.22 12.21 17.05
EPS (TTM): 12.88 -- --
ROI: 34.33 5.67 3.26
ROE: 34.93 6.87 5.84
Name Age Since Current Position
Wiehoff, John 49 2007 Chairman of the Board, President, Chief Executive Officer
Lindbloom, Chad 46 2007 Chief Financial Officer, Senior Vice President
Walker, Mark 53 2007 Senior Vice President
Satterlee, Scott 42 2007 Senior Vice President
Butts, James 55 2007 Senior Vice President
Lemke, James 43 2007 Senior Vice President
Campbell, Ben 45 2009 Vice President, General Counsel, Secretary
Ezrilov, Robert 66 1995 Independent Director
Fortun, Wayne 62 2001 Independent Director
Short, Brian 61 2002 Independent Director
Wickham, Michael 64 2004 Independent Director
Roloff, ReBecca 56 2004 Independent Director
Stake, James 58 2009 Independent Director
MacLennan, David 51 2010 Independent Director
Address:
8100 Mitchell Road
Eden Prairie, Minnesota 55344-2248
U.S.A.
C.H. Robinson Worldwide, Inc. ( C.H. Robinson) is a third party logistics company. The Company provides freight transportation services and logistics solutions to companies of all sizes, in a variety of industries. During the year ended December 31, 2010, it handled approximately 9.2 million shipments for more than 36,000 customers. It operates through a network of 231 offices, which it call branches, in North America, Europe, Asia, South America, Australia, and the Middle East. As a part of its transportation services, it provides a range of value-added logistics services, such as supply chain analysis, freight consolidation, core carrier program management, and information reporting. In addition to multimodal transportation services, it offers two other services: sourcing services (Sourcing) and fee-based information services (Information Services). The Sourcing business is primarily the buying, selling, and marketing of fresh produce. Information Services consisted of a C.H. Robinson subsidiary, T-Chek Systems, Inc. (T-Chek).
Multimodal Transportation and Logistics Services
C.H. Robinson provides freight transportation and related logistics and supply-chain services. Its services range from commitments on a specific shipment to much more comprehensive and integrated relationships. It provides transportation and logistics services, such as Truckload, Less Than Truckload (LTL), Intermodal, Ocean, Air and Other Logistics Services. Through contracts with motor carriers, it has access to dry vans, temperature controlled vans, and flatbeds. It also offers time-definite and expedited truck transportation. It consolidates partial shipments for several customers into full truckloads. LTL transportation involves the shipment of small packages and single or multiple pallets of freight, up to and including full trailer load freight. The intermodal transportation service is the shipment of freight in trailers or containers by a combination of truck and rail. Ocean consolidates shipments, determine routing, select ocean carriers, contract for ocean shipments, provide for local pickup and delivery of shipments, and arrange for customs clearance of shipments, including the payment of duties. Air provides door-to-door service as a full-service international and domestic air freight forwarder. Other Logistics Services provides fee-based transportation management services, customs brokerage, warehousing services, and other services.
Sourcing
The Sourcing customer base includes multi-store grocery retailers, restaurant chains, and foodservice providers, and growers. The Sourcing services have expanded to include forecasting and replenishment, brand management, and category development services. It has various national and regional branded produce programs, including both in-house brands and national licensed brands. These programs contain a variety of fresh bulk and value added fruits and vegetables.
Information Services
T-Chek’s customers are primarily motor carriers and truck stop chains. T-Chek provides its customers with fuel management services, funds transfer, spend management reporting, driver payroll services, permits and online access to customized business intelligence. Information Services accounted for approximately 4% of net revenues during 2010.
C.H. Robinson continued to expand its logistics capabilities in the late 1990s. In 1995 the company entered the full-service logistics market through the formation of C.H. Robinson Logistics. This new division focused on developing and managing the logistics operations of customers throughout the entire supply chain. Two years later, the company entered the burgeoning market for expedited freight transportation, focusing on full trailerload shipments, through another new division, CHR-Ex.
At this time, the company remained entirely owned by current and former employees. With a number of the shareholders wishing to cash in at least part of their stakes, the company went public in October 1997. An initial public offering that month of about 25 percent of the company, or 10.6 million common shares, sold for $18 per share (which exceeded the expected price of $15 to $17) and generated about $190 million for the 101 people who sold shares. The initial market value of the company, which was at this time renamed C.H. Robinson Worldwide Inc. to reflect its increased international profile, totaled $743 million. Shares began trading on the NASDAQ under the symbol CHRW. Gross revenues for 1997 reached $1.79 billion, while net revenues amounted to $206 million, a 15.1 percent increase over the previous year. (Net revenues were considered by the company to be a more accurate gauge of performance than gross revenues, as they deducted from gross revenues the cost of the transportation contracted for by the company and the purchase price of the products sourced by the company.) Overseas markets accounted for 16 percent of revenues in 1997.
Sid Verdoorn, CEO of the firm since 1977, was named to the additional post of chairman in 1998. John P. Wiehoff, who was named senior vice-president and CFO in July 1998, was promoted to president of the company in December 1999. The leaders initiated a string of acquisitions in 1998, as C.H. Robinson continued to seek opportunities for growth and as the transportation industry entered a period of heightened consolidation. During 1998 two acquisitions were completed: Preferred Translocation Systems, a non-asset-based third-party logistics firm specializing in partial truckloads; and Comexter Group, an Argentinean firm specializing in South American transportation, freight forwarding, trading, and customs brokering. Another overseas acquisition, that of Norminter S.A., was consummated the following year. Based in Caen, France, Norminter was a non-asset-based third-party logistics company with offices in France, Germany, Spain, and the United Kingdom. Also in 1999, C.H. Robinson acquired Vertex Transportation Inc., which was based in East Rochester, New York, and provided third-party logistics services throughout North America. The largest of this string of acquisitions came in December 1999 when C.H. Robinson paid about $136 million in cash and stock for American Backhaulers, Inc., a privately held logistics firm based in Chicago. American Backhaulers specialized in over-the-road transportation services and had annual gross revenues of about $285 million. In August 2000 C.H. Robinson entered a new segment of the market through the purchase of Brooklyn Center, Minnesota-based Trans-Consolidated Inc., which was a third-party logistics firm specializing in refrigerated partial truckload shipments for perishable food manufacturers.
Results for 2000 highlighted the rapid pace of C.H. Robinson's growth. The gross revenues figure of $2.88 billion represented a 27 percent increase over the previous year, and the net revenues of $419.3 million were a 43 percent gain over the $293.3 million total of 1999. Looking to the new century, the company was aiming to continue to increase its net revenues by at least 15 percent each year. Strategies to achieve this growth included the development of customer-specific logistics solutions, rapid growth in the partial truckload and short-haul sectors, the addition of more domestic branches and the expansion of intracontinental distribution networks, and an increased use of technology to aid in communication with customers and to improve efficiency. With no debt, strong cash flow, and a motivated workforce that continued to own the bulk of the company stock, C.H. Robinson appeared likely to maintain and solidify its position in the rapidly growing third-party logistics industry.
Principal Subsidiaries: C.H. Robinson International, Inc.; C.H. Robinson Venezuela, C.A.; C.H. Robinson de Mexico, S.A. de C.V.; C.H. Robinson Company (Canada) Ltd.; C.H. Robinson Company; C.H. Robinson Company, Inc.; CHR Aviation, LLC; Daystar-Robinson, Inc.; Fresh 1 Marketing, Inc.; C.H. Robinson Worldwide-LTL, Inc.; Robinson Holding Company; C.H. Robinson Company LP (99%); Wagonmaster Transportation Co.; Robinson Europe, S.A. (France); Robinson Italia S.r.L (Italy; 95%); C.H. Robinson Poland Sp. Zo.o; Comexter Robinson S.A. (Argentina); Comexter Trading Company; Comexter Cargo, Inc.; Robinson Europe (France); C.H. Robinson (UK) Limited; Robinson France SARL; Norminter Iberica (Spain; 98%); E.G.C. SARL (France); T.E.A. 100% Payment & Logistics Services, Inc.; T-Chek Systems, Inc.; Robinson Logistica Do Brasil Ltda. (Brazil).
Principal Competitors: Ryder System, Inc.; GeoLogistics Corporation; Exel plc; BAX Global Inc.; EGL, Inc.; Schneider National, Inc.; CNF Inc.; GATX Corporation; CSX Corporation; FedEx Corporation; Fritz Corporation.
OVERALL
Beta: 0.77
Market Cap (Mil.): $13,062.38
Shares Outstanding (Mil.): 162.97
Annual Dividend: 1.16
Yield (%): 1.45
FINANCIALS
CHRW.OQ Industry Sector
P/E (TTM): 33.22 12.21 17.05
EPS (TTM): 12.88 -- --
ROI: 34.33 5.67 3.26
ROE: 34.93 6.87 5.84
Statistics:
Public Company
Incorporated: 1905 as C.H. Robinson Company
Employees: 3,677
Sales: $2.88 billion (2000)
Stock Exchanges: NASDAQ
Ticker Symbol: CHRW
NAIC: 488510 Freight Transportation Arrangement; 422480 Fresh Fruit and Vegetable Wholesalers; 541614 Process, Physical Distribution, and Logistics Consulting Services
Key Dates:
1905: Charles H. Robinson joins with Nash Brothers to form a partnership, C.H. Robinson Company, to ship produce to customers in the Red River Valley.
1913: With end of partnership, Nash Finch Company (successor of Nash Brothers) gains sole ownership of C.H. Robinson Co.
Early 1940s:Company is divided in two, with one company owned by its employees and the other owned by Nash Finch.
Mid-1960s:The two successor firms are consolidated under the name C.H. Robinson Co., with Nash Finch owning about 25 percent and employees the remainder.
1976: Nash Finch's shares are bought out and the firm becomes entirely employee owned.
1980: U.S. government deregulates the transportation industry; C.H. Robinson responds by promoting itself as a contract carrier for virtually any shippable product.
1988: Company enters the intermodal business.
1992: Freight forwarder C.S. Greene International is acquired.
1997: Company goes public and changes its name to C.H. Robinson Worldwide, Inc.
1998: Preferred Translocation Systems and Comexter Group are acquired.
1999: Three acquisitions are completed: Norminter S.A., Vertex Transportation Inc., and American Backhaulers, Inc.
2000: Trans-Consolidated Inc. is acquired, marking C.H. Robinson's entry into a new segment, refrigerated partial truckload shipments for perishable food manufacturers.
OVERALL
Beta: 0.77
Market Cap (Mil.): $13,062.38
Shares Outstanding (Mil.): 162.97
Annual Dividend: 1.16
Yield (%): 1.45
FINANCIALS
CHRW.OQ Industry Sector
P/E (TTM): 33.22 12.21 17.05
EPS (TTM): 12.88 -- --
ROI: 34.33 5.67 3.26
ROE: 34.93 6.87 5.84
Name Age Since Current Position
Wiehoff, John 49 2007 Chairman of the Board, President, Chief Executive Officer
Lindbloom, Chad 46 2007 Chief Financial Officer, Senior Vice President
Walker, Mark 53 2007 Senior Vice President
Satterlee, Scott 42 2007 Senior Vice President
Butts, James 55 2007 Senior Vice President
Lemke, James 43 2007 Senior Vice President
Campbell, Ben 45 2009 Vice President, General Counsel, Secretary
Ezrilov, Robert 66 1995 Independent Director
Fortun, Wayne 62 2001 Independent Director
Short, Brian 61 2002 Independent Director
Wickham, Michael 64 2004 Independent Director
Roloff, ReBecca 56 2004 Independent Director
Stake, James 58 2009 Independent Director
MacLennan, David 51 2010 Independent Director
Address:
8100 Mitchell Road
Eden Prairie, Minnesota 55344-2248
U.S.A.
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