CHRW’s Robinson Fresh 4Q16 revenues
C.H. Robinson Worldwide’s (CHRW) Robinson Fresh segment is the smallest of the company’s segments in terms of revenue. In 4Q16, the segment’s revenue total fell 3.7% to $529.0 million from $549.7 million in 4Q15.
The segment’s net revenue also shrank 7.9% in 4Q16 to $51.8 million, as compared to $56.2 million in 4Q15.
The Robinson Fresh segment provides sourcing services. These include the buying, selling, and marketing of fresh fruits, vegetables, and other perishable items. This segment sources products around the globe. To cater customers in this segment, CHRW has a tangible presence in North America, Europe, Asia, and South America.
Why did the revenue slide?
In 4Q16, the segment’s net revenue fell 3.5% to $25.9 million from $26.9 million in 4Q15 on account of reduced market pricing and changes in service mix. The Robinson Fresh transportation net revenue fell 11.9% to $25.8 million in 4Q16, as compared with $29.3 million in 4Q15. Lower customer pricing dragged down transportation revenues.
To be sure, CHRW aims to boost its market share across all service lines, and specifically, it’s targeting opportunities in Asia and Europe.