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About C.H. Robinson Worldwide, Inc.

C.H. Robinson Worldwide (CHRW) is a third-party logistics (3PL) provider. The company contracts with more than 78,000 carriers, including trucks, trains, ships, and airplanes, to arrange freight transportation for its 119,000-plus customers in the food and beverage, manufacturing, and retail industries. Using its proprietary Navisphere platform, the company handles about 18 million shipments annually. Besides transportation, C.H. Robinson also offers logistics, supply chain management, and transportation management services. It operates worldwide but generates almost all of its revenue in the US.

Operations

C.H. Robinson operates through two main reporting segments: North American Surface Transportation (NAST) and Global Forwarding, with remaining operating segments reported under All Other and Corporate. The company conducts business utilizing its proprietary Navisphere digital platform that provides sophisticated business analytics and allows customers to communicate worldwide with parties in their supply chain across languages, currencies, and continents.

NAST generates about 75 % of the company's revenue and provides freight transportation services—mainly truckload, LTL, and intermodal services—across North America through a network of offices in the US, Canada, and Mexico.

Global Forwarding (about 15%) provides global logistics services through an international network of offices and independent agents worldwide. Global Forwarding offers ocean freight, air freight, and customs brokerage services.

Other activities not covered by C.H. Robinson's reporting segments are referred to as All Other & Corporate. It i primarily consists of Robinson Fresh, Managed Services and Other Surface Transportation outside of North America. Robinson Fresh provides sourcing services which primarily include the buying, selling, and marketing of fresh fruits, vegetables, and other perishable items. Robinson Fresh sources products from around the world.

Geographic Reach

Minnesota-based, C.H. Robinson has hundreds of branch offices in 39 countries in the North and South Americas, Europe, Asia, Africa and Australia. The company's largest market is the US, which typically represents more than 85% of sales.

Sales and Marketing

C.H. Robinson's customers include grocery retailers and restaurants, produce wholesalers, and foodservice distributors. It works with more than 119,000active customers ranging in size from small family businesses to Fortune 100 companies in a wide range of industries.

Financial Performance

Net sales decreased to $15.3 billion in 2019, an 8% increase compared with $16.6 billion in 2018. Total transportation revenues decreased driven by lower pricing and volumes in truckload and, to a lesser extent, decreased intermodal volumes and decreased pricing in their ocean and air service lines. Total purchased transportation and related services decreased due to decreased cost of transportation in most of their transportation services resulting from softening market demand over the course of 2019 and excess carrier capacity.

Profits decreased 13% in 2019 to $577 million compared with $664.5 million the previous year. The decrease was due to the fall on their revenue and increase on interest and other expenses.

Cash at the end of fiscal 2019 was $447.9 million, an increase of $69.2 million from the prior year. Cash from operations contributed $835.4 million to the coffers, while investing activities used $113.0 million primarily for purchases of property and equipment and software development. Financing activities used another $651.3 million for loan payments, dividends to stockholders, and the company's stock repurchase program.

Strategy

The company prioritizes its investments to grow the business, as they require some working capital and a relatively small amount of capital expenditures to grow. C.H. Robinson are continually looking for acquisitions, but those acquisitions must fit its culture and enhance growth opportunities. On January 28, 2020, the company entered a definitive agreement to acquire Prime Distribution Services, a leading provider of retail consolidation services in North America for approximately $225 million in cash. The agreement is subject to certain customary closing conditions, including regulatory approval.

Mergers and Acquisitions

In early 2020, C.H Robinson acquired Prime Distribution Services ("Prime"), a leading provider of retail consolidation and value-added warehouse services in North America from Roadrunner Transportation for $225 million. Prime is located in Plainfield, United States. The acquisition expands C.H. Robinson's retail consolidation business and brings additional scale, capabilities and expertise to the company's portfolio.

In mid-2019, C.H. Robinson agreed to acquire Dema Services, Headquartered in Pescara, Italy, it is a provider of European road transportation based in Italy. The acquisition expands the company's existing footprint in Italy, which it believes is one of the largest road transportation markets in Europe.

In 2019, CH Robinson acquired Spanish forwarder Space Cargo Group, a leading provider of international freight forwarding, customs brokerage, and other logistics services in Spain and Colombia. The purchase price of the acquisition is €42m. C.H Robinson acquired the company to expand its global network. Space Cargo Group was based in Madrid, Spain.

Company Background

C.H. Robinson traces its roots to the early 1900s when Charles H. Robinson began a produce brokerage in Grand Forks, ND. Robinson entered a partnership in 1905 with Nash Brothers, the leading wholesaler in North Dakota, and the company C.H. Robinson was born.

With the development of the interstate highway system and refrigerated trucks after WWII, the company was no longer dependent on railroads and began charging for truck brokerage of perishables. As part of its overall effort to become a full-service provider, C.H. Robinson formed its intermodal division in 1988 and ventured overseas with the launch of its international division in 1989. It entered Mexico in 1990 and added air freight operations and international freight forwarding services opening offices in Mexico, Chile, and Venezuela.

The company went public in 1997 and became C.H. Robinson Worldwide (CHRW).

C.H. Robinson Worldwide, Inc.

14701 Charlson Rd
Eden Prairie, MN 55347-5076
Phone: 1 (952) 937-8500

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: CHRW
Stock Exchange: , NASDAQ
Account Manager: Kurt Bogad
CFO: Andrew C. Clarke
Chairman, President, and CEO: John P. Wiehoff
Employees (This Location): 591
Employees (All Locations): 15,427

Major Office Locations

Eden Prairie, MN

Other Locations

Huntsville, AL
Mobile, AL
Vestavia Hills, AL
Bentonville, AR
West Memphis, AR
Phoenix, AZ
Tempe, AZ
Tucson, AZ
Carson, CA
City Of Industry, CA
Claremont, CA
Davis, CA
Fresno, CA
Orange, CA
Roseville, CA
San Diego, CA
Torrance, CA
Visalia, CA
Walnut Creek, CA
Denver, CO
Greenwood Village, CO
Jacksonville, FL
Medley, FL
Miami, FL
Miramar, FL
Orlando, FL
Sunrise, FL
Tampa, FL
Atlanta, GA
Savannah, GA
Ankeny, IA
Coralville, IA
Boise, ID
Bloomington, IL
Chicago, IL
Cobden, IL
Des Plaines, IL
Lemont, IL
Lisle, IL
Peoria, IL
Rockford, IL
Rosemont, IL
Wood Dale, IL
Woodridge, IL
Evansville, IN
Fort Wayne, IN
Indianapolis, IN
Wichita, KS
Erlanger, KY
Lexington, KY
Louisville, KY
Baton Rouge, LA
Metairie, LA
Shreveport, LA
Tewksbury, MA
Woburn, MA
Baltimore, MD
Portland, ME
Auburn Hills, MI
Brighton, MI
Grand Rapids, MI
Kalamazoo, MI
Lansing, MI
Portage, MI
Taylor, MI
Traverse City, MI
Eden Prairie, MN
Minneapolis, MN
Rochester, MN
Sartell, MN
Kansas City, MO
Saint Louis, MO
Springfield, MO
Ridgeland, MS
Charlotte, NC
Raleigh, NC
Winston Salem, NC
Fargo, ND
Omaha, NE
Cranford, NJ
Secaucus, NJ
Voorhees, NJ
Albuquerque, NM
Las Vegas, NV
Buffalo, NY
Latham, NY
Rochester, NY
Syracuse, NY
Canfield, OH
Cleveland, OH
Columbus, OH
Independence, OH
Loveland, OH
Toledo, OH
Oklahoma City, OK
Bridgeville, PA
Conshohocken, PA
Mechanicsburg, PA
New Kensington, PA
Columbia, SC
Greenville, SC
North Charleston, SC
Sioux Falls, SD
Chattanooga, TN
Jackson, TN
Knoxville, TN
Memphis, TN
Nashville, TN
Austin, TX
Edinburg, TX
El Paso, TX
Fort Worth, TX
Grapevine, TX
Houston, TX
Laredo, TX
Mcallen, TX
San Antonio, TX
Spring, TX
Sugar Land, TX
Sandy, UT
Chesapeake, VA
North Chesterfield, VA
Roanoke, VA
Liberty Lake, WA
Seattle, WA
Vancouver, WA
Franklin, WI
Green Bay, WI
Madison, WI
Stevens Point, WI
Ningbo, China
Qingdao, China
Tianjin, China
Xiamen, China
Zhongshan, China
Ahmedabad, India
Bengaluru, India
Coimbatore, India
Indore, India
Kolkata, India
Mumbai, India
New Delhi, India
Pune, India
Secunderabad, India
Visakhapatnam, India
Campinas, Brazil
Santos, Brazil
Sao Jose, Brazil
Burnaby, Canada
Calgary, Canada
Concord, Canada
Dorval, Canada
Edmonton, Canada
London, Canada
Mississauga, Canada
Montréal, Canada
Oakville, Canada
Québec, Canada
Vancouver, Canada
Vaughan, Canada