MIRA
INFORM REPORT
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Report Date : |
14.09.2012 |
IDENTIFICATION DETAILS
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Name : |
EXPEDITORS INTERNATIONAL OF |
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Registered Office : |
Fortune 1000 Rank: 395, 12th Floor, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
May 1979 |
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Legal Form : |
Public Parent company |
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Line of Business : |
providing
global logistics services. |
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No. of Employees : |
13,780 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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United
States |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
United States - ECONOMIC OVERVIEW
The US has the largest and most technologically powerful economy in the world,
with a per capita GDP of $48,100. In this market-oriented economy, private
individuals and business firms make most of the decisions, and the federal and
state governments buy needed goods and services predominantly in the private
marketplace. US business firms enjoy greater flexibility than their
counterparts in Western Europe and Japan in decisions to expand capital plant,
to lay off surplus workers, and to develop new products. At the same time, they
face higher barriers to enter their rivals' home markets than foreign firms
face entering US markets. US firms are at or near the forefront in
technological advances, especially in computers and in medical, aerospace, and
military equipment; their advantage has narrowed since the end of World War II.
The onrush of technology largely explains the gradual development of a
"two-tier labor market" in which those at the bottom lack the
education and the professional/technical skills of those at the top and, more
and more, fail to get comparable pay raises, health insurance coverage, and
other benefits. Since 1975, practically all the gains in household income have
gone to the top 20% of households. Since 1996, dividends and capital gains have
grown faster than wages or any other category of after-tax income. Imported oil
accounts for nearly 55% of US consumption. Oil prices doubled between 2001 and
2006, the year home prices peaked; higher gasoline prices ate into consumers'
budgets and many individuals fell behind in their mortgage payments. Oil prices
increased another 50% between 2006 and 2008. In 2008, soaring oil prices
threatened inflation and caused a deterioration in the US merchandise trade
deficit, which peaked at $840 billion. In 2009, with the global recession
deepening, oil prices dropped 40% and the US trade deficit shrank, as US
domestic demand declined, but in 2011 the trade deficit ramped back up to $803
billion, as oil prices climbed once more. The global economic downturn, the
sub-prime mortgage crisis, investment bank failures, falling home prices, and
tight credit pushed the United States into a recession by mid-2008. GDP
contracted until the third quarter of 2009, making this the deepest and longest
downturn since the Great Depression. To help stabilize financial markets, in
October 2008 the US Congress established a $700 billion Troubled Asset Relief
Program (TARP). The government used some of these funds to purchase equity in
US banks and industrial corporations, much of which had been returned to the
government by early 2011. In January 2009 the US Congress passed and President
Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus
to be used over 10 years - two-thirds on additional spending and one-third on
tax cuts - to create jobs and to help the economy recover. In 2010 and 2011,
the federal budget deficit reached nearly 9% of GDP; total government revenues
from taxes and other sources are lower, as a percentage of GDP, than that of
most other developed countries. The wars in Iraq and Afghanistan required major
shifts in national resources from civilian to military purposes and contributed
to the growth of the US budget deficit and public debt - through 2011, the
direct costs of the wars totaled nearly $900 billion, according to US
government figures. In March 2010, President OBAMA signed into law the Patient
Protection and Affordable Care Act, a health insurance reform bill that will
extend coverage to an additional 32 million American citizens by 2016, through
private health insurance for the general population and Medicaid for the
impoverished. Total spending on health care - public plus private - rose from
9.0% of GDP in 1980 to 17.9% in 2010. In July 2010, the president signed the
DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote
financial stability by protecting consumers from financial abuses, ending
taxpayer bailouts of financial firms, dealing with troubled banks that are
"too big to fail," and improving accountability and transparency in
the financial system - in particular, by requiring certain financial
derivatives to be traded in markets that are subject to government regulation
and oversight. Long-term problems include inadequate investment in
deteriorating infrastructure, rapidly rising medical and pension costs of an aging
population, sizable current account and budget deficits - including significant
budget shortages for state governments - energy shortages, and stagnation of
wages for lower-income families.
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Source : CIA |
Company name & address
Expeditors International of Washington
Fortune 1000 Rank: 395
12th Floor, 1015 Third Ave
Seattle, WA 98104
United States
Tel: 206-674-3400
Fax: 206-682-9777
Web: www.expeditors.com
Synthesis
Employees: 13,780
Company Type: Public Parent
Corporate Family: 117
Companies
Traded: NASDAQ: EXPD
Incorporation Date:
May-1979
Auditor: KPMG LLP
Financials in: USD
(Millions)
Fiscal Year End:
31-Dec-2011
Reporting Currency: US
Dollar
Annual Sales: 6,150.5 1
Net Income:
385.7
Total Assets:
2,866.8 2
Market Value:
7,939.6 (24-Aug-2012)
Business Description
Expeditors International of Washington, Inc. is engaged in the business of providing global logistics services. The Company offers its customers an international network supporting the movement and positioning of goods. The Company’s services include the consolidation or forwarding of air and ocean freight. In each United States office, and in many overseas offices, the Company acts as a customs broker. The Company also provides additional services, including distribution management, vendor consolidation, cargo insurance, purchase order management and customized logistics information. For the six months ended 30 June 2012, Expeditors International of Washington revenues decreased 4% to $2.92B. Net income decreased 14% to $160.7M. Revenues reflect Asia Pacific segment decrease of 5% to $1.47B, Europe & Africa segment decrease of 8% to $408.6M, United States segment decrease of 1% to $756.4M. Net income also reflects Asia Pacific segment income decrease of 18% to $99M.
Industry
Industry Miscellaneous Transportation
ANZSIC 2006: 5299 - Other
Transport Support Services Not Elsewhere Classified
NACE 2002: 6340 - Activities of
other transport agencies
NAICS 2002: 48851 - Freight
Transportation Arrangement
UK SIC 2003: 6340 - Activities
of other transport agencies
UK SIC 2007: 5229 - Other
transportation support activities
US SIC 1987: 4731 - Arrangement
of Transportation of Freight and Cargo
Key Executives
(Emails Available)
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Name |
Title |
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Peter J. Rose |
Chairman of the Board, Chief Executive Officer |
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R. Jordan Gates |
President, Chief Operating Officer, Director |
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Bradley S. Powell |
Chief Financial Officer, Senior Vice President |
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Amy J. Tangeman |
Senior Vice President - General Counsel, Secretary |
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Jeffrey S. Musser |
Executive Vice President, Chief Information Officer |
Significant Developments
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* number of significant
developments within the last 12 months
News
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Title |
Date |
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Port CEOs elsewhere rarely sit on boards
of for-profit companies |
7-Sep-2012 |
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Port CEO pressed to choose between job,
directorship |
30-Aug-2012 |
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Port sees no conflict in chief's outside
board position |
29-Aug-2012 |
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Lawmakers raise concerns over Port chief's
side job |
25-Aug-2012 |
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The Seattle Times |
12-Aug-2012 |
Financial Summary
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Stock Snapshot
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1 - Profit & Loss Item Exchange Rate: USD 1 = USD 1
2 - Balance Sheet Item Exchange Rate: USD 1 = USD 1
Corporate Overview
Location
12th Floor, 1015 Third Ave
Seattle, WA, 98104
King County
United States
Tel: 206-674-3400
Fax: 206-682-9777
Web: www.expeditors.com
Quote Symbol - Exchange
EXPD - NASDAQ
Sales USD(mil): 6,150.5
Assets USD(mil): 2,866.8
Employees: 13,780
Fiscal Year End: 31-Dec-2011
Industry: Miscellaneous
Transportation
Incorporation Date: May-1979
Company Type: Public
Parent
Quoted Status: Quoted
Chairman of the Board,
Chief Executive Officer: Peter J.
Rose
Company Web Links
Corporate History/Profile
Employment Opportunities
Financial Information
Home Page
Investor Relations
News Releases
Products/Services
Contents
Industry Codes
Business Description
Financial Data
Market Data
Key Corporate Relationships
Additional Information
Industry Codes
ANZSIC 2006 Codes:
5299 - Other Transport Support Services Not Elsewhere Classified
4810 - Water Freight Transport
4900 - Air and Space Transport
NACE 2002 Codes:
6340 - Activities of other transport agencies
6210 - Scheduled air transport
6110 - Sea and coastal water transport
NAICS 2002 Codes:
48851 - Freight Transportation Arrangement
481111 - Scheduled Passenger Air Transportation
483111 - Deep Sea Freight Transportation
US SIC 1987:
4731 - Arrangement of Transportation of Freight and Cargo
4412 - Deep Sea Foreign Transportation of Freight
4512 - Air Transportation, Scheduled
UK SIC 2003:
6340 - Activities of other transport agencies
6210 - Scheduled air transport
61102 - Freight sea and coastal water transport
UK SIC 2007:
5229 - Other transportation support activities
5020 - Sea and coastal freight water transport
51101 - Scheduled passenger air transport
Business
Description
Expeditors
International of Washington, Inc., incorporated in May 1979, is engaged in the
business of providing global logistics services. The Company offers its
customers an international network supporting the movement and positioning of
goods. The Company’s services include the consolidation or forwarding of air
and ocean freight. In each United States office, and in many overseas offices,
the Company acts as a customs broker. The Company also provides additional
services, including distribution management, vendor consolidation, cargo insurance,
purchase order management and customized logistics information.
Airfreight
Services
During the year
ended December 31, 2011, Airfreight services accounted for approximately 37% of
the consolidated revenues net of freight consolidation expenses (net revenues).
When performing airfreight services, the Company acts either as a freight
consolidator or as an agent for the airline, which carries the shipment. When
acting as a freight consolidator, the Company purchases cargo space from
airlines on a volume basis and resells that space to its customers. When moving
shipments between points where the volume of business does not facilitate
consolidation, the Company receives and forwards individual shipments as the
agent of the airline, which carries the shipment. The Company offers its
customers knowledge of routing, familiarity with local business practices,
knowledge of export and import documentation and procedures, and assistance
with space availability in periods of peak demand.
In the Company’s
airfreight forwarding operations, it procures shipments from its customers,
determines the routing, consolidates shipments bound for a particular airport
distribution point, and selects the airline for transportation to the
distribution point. At the distribution point, the Company or its agent
arranges for the consolidated lot to be broken down into its component
shipments and for the transportation of the individual shipments to their final
destinations. The Company estimates its average airfreight consolidation weighs
approximately 3,900 pounds and a consolidation includes merchandise from
several shippers.
The Company
delivers shipments from a Company warehouse at the origin to the airline after
consolidating the freight into containers or onto pallets. Shipments arrive at
the destination distribution point within 48 hours after such delivery. The
Company’s airfreight forwarding net revenues from a consolidated shipment
include the differential between the rate charged to the Company by an airline
and the rate, which the Company charges to its customers, commissions paid to
the Company by the airline carrying the freight and fees for ancillary
services. Such ancillary services provided by the Company include preparation
of shipping and customs documentation, packing, crating and insurance services,
negotiation of letters of credit, and preparation of documentation to comply
with local export laws. When the Company acts as an agent for an airline
handling an unconsolidated shipment its net revenues are derived from
commissions paid by the airline, and fees for ancillary services paid by the
customer.
The Company
performs break-bulk services, which involve receiving and breaking down
consolidated airfreight lots and arranging for distribution of the individual
shipments. Break-bulk service revenues also include commissions from agents for
airfreight shipments.
Ocean Freight and Ocean Services
During 2011, Ocean
freight services accounted for approximately 23% of the Company’s consolidated
net revenues. The Company operates Expeditors International Ocean (EIO), an
Ocean Transportation Intermediary, sometimes referred to as a Non-Vessel
Operating Common Carrier (NVOCC), which specializes in ocean freight
consolidation in trade lanes in the world. EIO also provides service, on a
smaller scale, to and from any location where the Company has an office or
agent. As an NVOCC, EIO contracts with ocean shipping lines to obtain
transportation for a fixed number of containers between various points during a
specified time period at an agreed rate. EIO handles full container loads for
customers that do not have annual shipping volumes sufficient to negotiate
contracts directly with the ocean carriers. EIO also solicits less-than
container load (LCL) freight to fill the containers and charges lower rates
than those available directly from shipping lines. The Company’s revenues as
an ocean freight forwarder are also derived from commissions paid by the
carrier and revenues from fees charged to customers for ancillary services,
which the Company may provide, such as preparing documentation, procuring
insurance, arranging for packing and crating services, and providing
consultation.
Order Management
provides services, which manage origin consolidation, supplier performance,
carrier allocation, carrier performance, container management, document
management, destination management and purchase order (PO)/ stock keeping unit
(SKU) visibility through a Web based application. Customers have the ability to
monitor and report against near real time status of PO from the date of
creation through final delivery. Order Management is available for various
modes of transportation, including ocean, air, truck and rail. Order Management
revenues are derived from services provided to the shipper, as well as
management fees associated with managing purchase order execution against
customer specific rules.
Customs Brokerage and Other Services
During 2011,
customs brokerage and other services accounted for approximately 40% of the
Company’s consolidated net revenues. As a customs broker, the Company assists
importers to clear shipments through customs by preparing required
documentation, calculating and providing for payment of duties and other taxes
on behalf of the importer, arranging for any required inspections by
governmental agencies, and arranging for delivery. The Company also provides
other value added services at destination, such as warehousing and product
distribution, inventory management and time definite transportation. The
Company provides customs clearance services in connection with many of the
shipments it handles as a freight forwarder. The Company provides custom
clearances for goods moving by rail and truck between the United States, Canada
and/or Mexico. The commodities being cleared and the time sensitive nature of
the border brokerage business require the Company to continue to make
enhancements to its systems in order to provide competitive service. The
Company’s wholly owned subsidiary, Expeditors Tradewin, L.L.C., responds to
customer driven requests for customs consulting services. Fees for these
non-transactional services are based upon hourly billing rates and bids for
mutually agreed projects
More Business Descriptions
Expeditors
International of Washington, Inc. is engaged in the business of providing
global logistics services. The Company offers its customers an international
network supporting the movement and positioning of goods. The Company’s
services include the consolidation or forwarding of air and ocean freight. In
each United States office, and in many overseas offices, the Company acts as a
customs broker. The Company also provides additional services, including
distribution management, vendor consolidation, cargo insurance, purchase order
management and customized logistics information. For the six months ended 30
June 2012, Expeditors International of Washington revenues decreased 4% to
$2.92B. Net income decreased 14% to $160.7M. Revenues reflect Asia Pacific segment
decrease of 5% to $1.47B, Europe & Africa segment decrease of 8% to
$408.6M, United States segment decrease of 1% to $756.4M. Net income also
reflects Asia Pacific segment income decrease of 18% to $99M.
International Freight Forwarders & Customs
Broker
Establishments
primarily engaged in furnishing shipping information and acting as agents in
arranging transportation for freight and cargo. Also included in this industry
are freight forwarders which undertake the transportation of goods from the
shippers to receivers for a charge covering the entire transportation, and, in
turn, make use of the services of other transportation establishments as
instrumentalities in effecting delivery.
Expeditors
International of Washington Inc. is engaged in the business of providing global
logistics services. The Company offers its customers a seamless international
network supporting the movement and strategic positioning of goods. The
Companys services include the consolidation or forwarding of air and ocean
freight. In each United States office and in many overseas offices the Company
acts as a customs broker. The Company also provides additional services
including distribution management vendor consolidation cargo insurance purchase
order management and customized logistics information. The Company does not
compete for overnight courier or small parcel business and does not own
aircraft or steamships.
Expeditors
International of Washington, Inc. (Expeditors) provides air and ocean freight
forwarding, cargo insurance, vendor consolidation, distribution management
services and purchase order management services. The company also provides
customs brokerage and other services. It provides its services to retailers,
wholesalers and electronics and manufacturing companies. Expeditors operate its
business through 356 facilities across the world, as well as 68 additional
offices and satellite facilities, which are leased or maintained by the
company. The company operates its business through three divisions, namely,
Airfreight services division, Ocean freight and ocean services division, and
Customs brokerage and other services division. Airfreight services division is
engaged in providing air cargo transportation facilities. The company acts as a
freight consolidator and also as an agent. As a freight consolidator,
Expeditors purchases cargo space from airlines and resells to its customers. As
agent, the company receives and forwards individual shipments of the airline
which carries the shipment. The company's airfreight forwarding operations
include procurement of shipments from its customers, determination of the
routing, consolidation of shipments bound for a particular airport distribution
point, and selection of the airline to transport to the distribution point. The
company consolidates individual shipments that it recives and presents to the
airline that helps in cost reduction for the customer. It also provides
ancillary services such as preparation of shipping and customs documentation,
crating and insurance services, negotiation of letters of credit, packing, and
documentation prepration to comply with local export laws. The company also
provides breakbulk services and receives and breaks consolidated airfreight
lots to arrange for distribution for individual shipments. For the fiscal year
ended December 2010, the Airfreight services division generated revenue
$2,821.83m, whcih accounted for 47.29% to the total revenue. During the nine
month period ended September 2011, the segment generated $2,187.73m in revenue
and accounted for 47.06% of the total revenue.Ocean freight and ocean services
division of the company operates through Expeditors International Ocean (EIO),
an ocean transportation intermediary. EIO provides ocean freight consolidation
across major trade lanes of the world. EIO obtain transportation for a fixed
number of containers through contracts with ocean shipping lines. EIO handles
full container loads for its customers with annual shipping volumes not
sufficient enough to negotiate comparable contracts directly with the ocean
carriers. It also offer order management services that includes managing origin
consolidation, carrier allocation and performance, supplier performance,
container management, destination management, document management and purchase
order (PO) or stock-keeping unit (SKU) visibility online. For the fiscal year
ended December 2010, the Ocean freight and Ocean services division generated
revenue of $1,955.4m, and contributed 32.77% to the total revenue. During the
nine month period ended September 2011, the segment generated $1,437,493m in
revenue and accounted for 30.92% of the total revenue.The company’s Customs
brokerage and other services division provides customs clearing services by
acting as a freight forwarder. It also offers customs clearing services while
moving goods through truck and rail between the US, Canada and Mexico.
Expeditor also offers required document preparation, calculation of customs
duties on behalf of the importers. For the fiscal year ended December 2010, the
Customs brokerage and other services division generated revenue of $1,190.34m,
whcih accounted for 19.95% to the total revenue. During the nine month period
ended September 2011, the segment generated $1,023.36m in revenue and accounted
for 22.01% of the total revenue.Geographically, the company operates in the US,
Other North America, Latin America, Asia Pacific, Europe and Africa, and Middle
East and India. The company operates through several subsidiaries across the
world.
Expeditors
International of Washington, Inc. (Expeditor) is non-asset based logistic
services to retailers, wholesalers, and electronics and manufacturing companies
worldwide. The company offers consolidation or forwarding of air and ocean
freight services. It also provides vendor consolidation, distribution
management, purchase of order management, cargo insurance, and customized
logistics information. Expeditor operates through three reportable divisions,
namely, Airfreight services division, Ocean freight and ocean services
division, and Customs brokerage and other services division. The company
conducts its business operations in the America, Europe, Middle East and Asia
regions. Expeditor is headquartered in Washington, the US.The company reported
revenues of (U.S. Dollars) USD 6,150.50 million during the fiscal year ended
December 2011, an increase of 3.07% over 2010. The operating profit of the
company was USD 618.33 million during the fiscal year 2011, an increase of
12.99% over 2010. The net profit of the company was USD 385.68 million during
the fiscal year 2011, an increase of 12.06% over 2010.
Expeditors
International (USA) is a global logistics company. Services include air and
ocean freight forwarding, vendor consolidation, customs clearance, marine
insurance, distribution and other value added international logistics services.
Expeditors
International-Washington offers a number of services, including customs
brokerage, air cargo, ocean cargo, enterprise risk management, distribution,
security and import and export compliance through its worldwide network of
integrated information management systems. The company has approximately 10,000
trained professionals in 200 facilities in more than 50 countries worldwide.
Services include vendor consolidation, ocean freight forwarding, insurance,
ocean consolidation, distribution and value-added services. It also provides
air cargo services to every major continent in the world including North
America, Latin and South America, the Far and Middle East, Indian
Sub-Continent, Europe, Australia, New Zealand and South Africa. Peter J. Rose,
chairman of the Board, has been the chief executive officer of Expeditors
International-Washington for more than 18 years. He has been with the
transportation and cargo company for over 25 years. Expeditors International-Washington
is headquartered in Seattle.
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Strategic Initiatives
Partnerships
In 2011, the company
focused on product diversification, in the areas of distribution services,
import and road freight services, that will strengthen its product portfolio
and will attract additional customers. Expeditors is also focusing in enhancing
strategic partnerships with its service providers for ensuring capacity and
performance sustainability, and legal compliance. The company also plans to
expand its operations in Malaysia, Korea, Northern and Western China and
Indonesia. Besides, it plans is focusing on effective cash management, credit
and receivable control, improve sales and customer retention. Thus such
strategic growth activities will enable the company to benefit from its planned
expansion strategy.Growth in Asia-Pacific Logistics MarketThe Asia Pacific
logistics market is growing at a rapid pace.
Sales and Distribution
The company
maintains and leases 68 additional offices and satellite locations in the US
and 356 leased locations worldwide. Each of the operational unit of the company
is in close proximity to an ocean port, airport, or on an important border
crossing and majority of its facilities contain warehouse facilities. The
company has formulated a differentiated geographical strategy, under which it
operates full service offices at locations where the company has complete
control over its assets and operations. In other regions, Expeditors contracts
with independent agents and operates around 48 such relationship-based offices.
The company also operates international service centers where it engages in
sales and customer service activities.
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Helpful |
Harmful |
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Internal Origin |
Strengths ·
Strategically Planned
Infrastructure |
Weaknesses |
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External Origin |
Opportunities |
Threats |
Overview
Expeditors
International of Washington, Inc. (Expeditors) provides global third party
logistics services. Geographical diversification of operations and comprehensive
service offering has helped the company to attain a strong competitive position
in the logistics industry that offers growth prospects. However, dependence on
third party transporters is a major area of concerns for Expeditors. Growth in
global air freight and logistics sector and Asian logistics market along with
strategic growth initiatives provides growth opportunities, which could
minimize the risk associated with fluctuating oil prices, government
regulations and intense competition.
Strengths
Strategically Planned Infrastructure
Expeditors
maintains a strategically planned and diversified operational infrastructure.
The company owns and maintains a worldwide network of offices and warehouses,
comprising 20 owned offices and warehouses across six continents. The company
maintains and leases 68 additional offices and satellite locations in the US
and 356 leased locations worldwide. Each of the operational unit of the company
is in close proximity to an ocean port, airport, or on an important border
crossing and majority of its facilities contain warehouse facilities. The
company has formulated a differentiated geographical strategy, under which it
operates full service offices at locations where the company has complete
control over its assets and operations. In other regions, Expeditors contracts
with independent agents and operates around 48 such relationship-based offices.
The company also operates international service centers where it engages in
sales and customer service activities. Besides, it maintains wholly-owned
locations under the supervision and control of another full service office.
Such planned operational infrastructure enables the company to efficiently
serve its customers and improve efficiency.
Geographical Diversification
Expeditors
provides logistics services at global level. The company offers its services
across the US, Other North America, Latin America, Asia Pacific, Europe and
Africa, and Middle East and India. The company operates a global operational
network to cater to its customer requirements. In the fiscal year ended 2010,
Expeditors generated 56.1% of its total revenue from Asia Pacific, followed by
22.6% from the US, 12.2% from Europe and Africa, 5.1% from Middle East and
India, 2.7% from Other North America, 1.2% from Latin America. Besides, during
the nine month period ended September 2011, the company reported 51.3% of its
revenue from Asia Pacific, followed by 24.9% from the US, 14.5% from Europe and
Africa, 5% from Middle East and India, 3% from Other North America, 1.4% from
Latin America. Such diversification helps the company to benefit from both
matured and maturing markets.
Substantial Market Presence
Expeditors offers
a wide range of services related to logistics and transportation. The company is
a global logistics service provider operating a worldwide network across six
continents. The company was listed among the top 100 third party logistic
providers (3PL), published in the 2011 Inbound Logistics report. As a global
logistics player, Expeditors offers a comprehensive range of services such as
air and ocean freight consolidation and forwarding, customs clearance, cargo
insurance, vendor consolidation, distribution and related value added logistics
services. The company offers its services through strategic relationships with
global air and ocean partners and local suppliers, which helps in offering
optimum routing and pricing options to its customers. It provides its services
to some of the leading companies in the world such as Wal-Mart, General
Electric, Cisco Systems, and Target, among others. Such comprehensive range of
services helps the company to serve a broader customer base that helps in
revenue diversification.
Weaknesses
Involvement in Legal Proceedings
There are certain legal
proceedings, which are pending against Expeditors. The company is subject to
several investigations, initiated by the U.S. Department of Justice (DOJ) of
air cargo freight forwarders. The European Commission (EC) served with a
Statement of Objections to the company and its Hong Kong-based subsidiary
relating to an ongoing investigation of freight forwarders. Brazilian
subsidiary of the company was also served with administrative proceeding from
the Brazilian Ministry of Justice (MOJ) in association to an on-going
investigation of freight forwarders. The outcome of these litigations is still
pending and is unpredictable. Involvement in legal proceedings and lawsuits
increases legal expenses of the company, which could have an adverse affect on
its consolidated results of operations, cash flows or financial position.
Further, legal issues also hinders brand image of the company.
Reliance on Third Party Suppliers
Expeditors
provides logistics services through third party operators as it is principally
a non-asset-based carrier. Expeditors depends on several other sources
including commercial airfreight carriers and air charter operators, ocean
freight carriers, trucking companies, few US railroads, and other related
transport companies. Since the company does not own any of the modes of
transport for its services, it is dependent on these third parties for
transportation. Expeditors’ business could be adversely affected, if any of
these third parties delay or discontinue their services.
Opportunities
Growth in Asia-Pacific Logistics Market
The Asia Pacific
logistics market is growing at a rapid pace. Fast expansion in Asia
manufacturing sector has led to search for providers who are capable of
designing and implementing order-fulfillment strategies in other countries. To
tap the market, the company could expand its operation in Asian market,
particularly in India and China. According to industry estimates, Asia-Pacific
logistics market is projected to increase from $291.3 billion in 2008 to $471.5
billion by 2013 representing an increase of 62%. The value in the logistics is
driven by retail, automotive, consumer, hi tech and pharmaceuticals segments.
It is estimated that growth from Asia Pacific would be higher than the Europe
and the US region. The market share of Asia Pacific will grow by another 10%
till 2013. Presently, the global logistics market is valued at $3.5 trillion,
and is expected to reach $4 trillion by 2013. According to the World Bank
Logistics Performance Index 2010, China and India are ranked 27th and 47th
place out of 155 countries, respectively. However, Asian countries still need
substantial investment to improve their logistics sector. In term of volume,
the biggest market is intra Asian. The company could benefit significantly due to
the potential opportunities offered by the Asia Pacific logistics market.
Strategic Growth
Initiatives
Expeditors is
focusing on enhancing and expanding its operations to meet the market
requirements . In 2011, the company introduced further integration and
automation into the cross dock process. The company introduced an enhanced
solution that provides effective reuse of data entered at origin, for inbound
and outbound hub operations and delivery carrier operations. The new solution
also incorporates an upstream planning report that provides its hub operation
to merge deliveries from multiple origins that can be consigned to the end
users. The new solution provides customers with additional supply chain
solutions. Earlier in 2010, Expeditors opened new offices in China (Beijing,
Zhengzhou and Chengdu). It also integrated Asia and South Pacific to
Asia-Pacific, to develop more business opportunities in the region. In 2011,
the company focused on product diversification, in the areas of distribution
services, import and road freight services, that will strengthen its product
portfolio and will attract additional customers. Expeditors is also focusing in
enhancing strategic partnerships with its service providers for ensuring
capacity and performance sustainability, and legal compliance. The company also
plans to expand its operations in Malaysia, Korea, Northern and Western China
and Indonesia. Besides, it plans is focusing on effective cash management,
credit and receivable control, improve sales and customer retention. Thus such
strategic growth activities will enable the company to benefit from its planned
expansion strategy.
Threats
Intense Competition
The industry in
which Expeditors operates its business is highly competitive in nature. The
company faces competition from related non-asset based logistics companies.
Since the industry is highly fragmented, Expeditors also faces competition from
third party freight brokers, internet matching services and internet freight
brokers, and carriers offering logistics services. Its major competitors
include Con-way Inc., United Parcel Service, Inc., UTi World Inc., C.H.
Robinson Worldwide Inc., YRC Worldwide Inc., and FedEx Corporation. Owing to
the success of the non-asset-based, third-party logistics business, new
companies have entered the transportation industry. Such intense competition in
the industry could result in loss of its sales, which would negatively affect
its overall business.
Government Regulations
Expeditors is
subject to several regulations and policies, which could have adverse effect on
the overall operations of the company. The company is affected by regulations
from a number of sources which tends to stress the avoidance of risk through
regulation and oversight, the effect of which is likely to be unforeseen costs
and potentially unforeseen consequences. The Company is subject to several
taxes in the US and foreign jurisdictions. Its activities in the US related to
the air transportation industry are subject to Transportation Security Administration
(TSA) regulations The company also needs to adhere with International Air
Transport Association (IATA) regulations. The various aspects regulated in
reaction to the global war on terror, governments around the world are
continuously enacting or updating security regulations. Such regulations are
multi-layered, increasingly technical in nature and characterized by a lack of
harmonization of substantive requirements amongst various governmental
authorities. Implementation of these regulations, including deadlines and
substantive requirements, would result in increased operating costs, damage to
the reputation, restrictions on operations and penalties. Failure to comply
with these regulations could impact the overall operations of the company.
Seasonality of Business
Expeditors’
revenue generation is significantly derived from customers in retail
industries. This affects the company's revenue performance as the shipping
patterns of retail companies are depenent on consumer demand and production
schedules. This could affect the company's revenue performance as any sudden
change in consumer demand for retail goods or delays in would affect the
transport of goods. Besides, several customers of the company ship a
significant portion of their goods during the quarter end. Thus, Expeditors’
significant revenue from retail sector is a matter of concern and could affect
its profit margins due to industry trends.
Fluctuating Fuel Prices
The company’s growth
could be limited owing to the volatility in fuel prices. The prices of fuel
have been fluctuating rapidly. According to the Research and Innovative
Technology Administration (RITA), during January 2010 to November 2010, the
total airline fuel cost per gallon of fuel increased by around 18.19%, compared
to the growth in previous year. In 2011 (January to November) the price per
gallon of fuel increased by 28.59%, compared to that in previous year. The
volatility in fuel prices could affect the profit margin of the company, as it
would find it difficult to pass on the increased fuel prices to customers.
Since the company derives part of its revenue by providing transport and
logistics services, its operating results could be harmed owing to the fluctuations
in oil prices.
Credit Report as of 11/01/2011
Location
1015 3rd Ave Ste:
12
Seattle, WA 98104-1184
United States
County: King
MSA: Seattle,
WA
Phone: 206-674-3400
Fax: 206-682-9777
URL: http://expd.com
ABI©: 004600987
Annual Sales: $6,150,498,000
(USD)
Employees: 13,590
Facility Size(ft2): 40,000+
Facility Own/Lease: Own
Business Type: Public
Location Type: Headquarter
Ticker: EXPD
Exchange: NASDAQ
Primary
Line of Business:
SIC: 4731-04 - Freight-Forwarding
NAICS: 488510 - Freight Transportation Arrangement
Secondary
Lines of Business:
NAICS: 541613 - Marketing Consulting Svcs
487210 - Scenic & Sightseeing
Transportation, Water
423990 - All Other Durable Goods
Merchant Whols
SICs: 4489-03 - Steamship Companies
4731-01 - Transportation Consultants
5099-05 - Importers (Whls)
8742-13 - Marketing Programs &
Services
9999-66 - Federal Government
Contractors
|
Corporate
Family |
Corporate
Structure News: |
|
|
Expeditors
International of Washington |
|
Expeditors International of Washington |
|
|
|
|
|
Company Name |
Company Type |
Location |
Country |
Industry |
Sales |
Employees |
|
Parent |
Seattle, WA |
United States |
Miscellaneous Transportation |
6,150.5 |
13,780 |
|
|
Subsidiary |
Sao Paulo |
Brazil |
Miscellaneous Transportation |
|
6,100 |
|
|
Subsidiary |
Seattle, WA |
United States |
Miscellaneous Transportation |
0.7 |
900 |
|
|
Subsidiary |
Seattle, WA |
United States |
Trucking |
|
800 |
|
|
Subsidiary |
Raunheim, Hessen |
Germany |
Miscellaneous Transportation |
144.1 |
320 |
|
|
Branch |
Bensenville, IL |
United States |
Trucking |
44.8 |
301 |
|
|
Branch |
Brisbane, CA |
United States |
Trucking |
29.9 |
201 |
|
|
Branch |
Hawthorne, CA |
United States |
Air Courier |
30.4 |
200 |
|
|
Branch |
Humble, TX |
United States |
Trucking |
29.8 |
200 |
|
|
Subsidiary |
Schiphol, Noord-Holland |
Netherlands |
Miscellaneous Transportation |
111.6 |
175 |
|
|
Branch |
Singapore |
Singapore |
Miscellaneous Transportation |
83.1 |
150 |
|
|
Subsidiary |
Bayan Lepas, Pulau Pinang |
Malaysia |
Miscellaneous Transportation |
99.8 |
|
|
|
Subsidiary |
Taipei |
Taiwan |
Miscellaneous Transportation |
|
150 |
|
|
Subsidiary |
Roissy-en-France |
France |
Miscellaneous Transportation |
178.2 |
149 |
|
|
Branch |
Peabody, MA |
United States |
Trucking |
20.9 |
140 |
|
|
Branch |
Grapevine, TX |
United States |
Trucking |
20.9 |
140 |
|
|
Subsidiary |
Mississauga, ON |
Canada |
Miscellaneous Transportation |
|
140 |
|
|
Branch |
Windsor, ON |
Canada |
Trucking |
6.7 |
34 |
|
|
Branch |
Richmond, BC |
Canada |
Trucking |
5.5 |
28 |
|
|
Branch |
Calgary, AB |
Canada |
Trucking |
4.5 |
23 |
|
|
Branch |
Saint-Laurent, QC |
Canada |
Trucking |
4.0 |
20 |
|
|
Branch |
Brampton, ON |
Canada |
Trucking |
1.4 |
7 |
|
|
Branch |
Delta, BC |
Canada |
Trucking |
1.0 |
5 |
|
|
Branch |
Mississauga, ON |
Canada |
Trucking |
1.0 |
5 |
|
|
Subsidiary |
Pioltello, Montecristo |
Italy |
Miscellaneous Transportation |
102.4 |
119 |
|
|
Subsidiary |
Dublin |
Ireland |
Miscellaneous Transportation |
16.5 |
107 |
|
|
Subsidiary |
Jeddah, Makkah |
Saudi Arabia |
Miscellaneous Transportation |
39.0 |
100 |
|
|
Subsidiary |
El-Obour City |
Egypt |
Miscellaneous Transportation |
37.0 |
100 |
|
|
Branch |
Atlanta, GA |
United States |
Trucking |
14.9 |
100 |
|
|
Branch |
El Paso, TX |
United States |
Trucking |
14.9 |
100 |
|
|
Subsidiary |
Providencia, Santiago |
Chile |
Miscellaneous Transportation |
8.0 |
100 |
|
|
Branch |
Doral, FL |
United States |
Miscellaneous Capital Goods |
89.7 |
95 |
|
|
Branch |
Kent, WA |
United States |
Trucking |
11.9 |
80 |
|
|
Subsidiary |
Madrid |
Spain |
Miscellaneous Transportation |
37.0 |
74 |
|
|
Subsidiary |
Brucargo (Zaventem) |
Belgium |
Miscellaneous Transportation |
11.6 |
71 |
|
|
Branch |
Portland, OR |
United States |
Trucking |
10.4 |
70 |
|
|
Branch |
Eagan, MN |
United States |
Trucking |
9.7 |
65 |
|
|
Branch |
Folcroft, PA |
United States |
Trucking |
8.9 |
60 |
|
|
Branch |
Laredo, TX |
United States |
Trucking |
8.9 |
60 |
|
|
Branch |
Memphis, TN |
United States |
Trucking |
7.7 |
52 |
|
|
Branch |
Norfolk, VA |
United States |
Trucking |
7.5 |
50 |
|
|
Branch |
Edison, NJ |
United States |
Trucking |
7.5 |
50 |
|
|
Subsidiary |
Warsaw |
Poland |
Miscellaneous Transportation |
|
50 |
|
|
Subsidiary |
Vecses |
Hungary |
Miscellaneous Transportation |
|
50 |
|
|
Branch |
Charlotte, NC |
United States |
Trucking |
6.7 |
45 |
|
|
Branch |
San Diego, CA |
United States |
Trucking |
6.7 |
45 |
|
|
Subsidiary |
Arlandastad, Stockholm |
Sweden |
Miscellaneous Transportation |
36.7 |
43 |
|
|
Branch |
Hanahan, SC |
United States |
Trucking |
6.0 |
40 |
|
|
Branch |
Indianapolis, IN |
United States |
Trucking |
6.0 |
40 |
|
|
Subsidiary |
Mexico City, Distrito Federal |
Mexico |
Miscellaneous Transportation |
0.5 |
37 |
|
|
Branch |
Phoenix, AZ |
United States |
Trucking |
5.2 |
35 |
|
|
Branch |
Aurora, CO |
United States |
Trucking |
5.2 |
35 |
|
|
Subsidiary |
Brussels |
Belgium |
Miscellaneous Transportation |
|
35 |
|
|
Branch |
Glen Burnie, MD |
United States |
Trucking |
4.5 |
30 |
|
|
Branch |
Louisville, KY |
United States |
Trucking |
4.5 |
30 |
|
|
Subsidiary |
Guatemala |
Guatemala |
Miscellaneous Transportation |
|
30 |
|
|
Subsidiary |
Christchurch |
New Zealand |
Miscellaneous Transportation |
|
30 |
|
|
Branch |
Savannah, GA |
United States |
Trucking |
4.3 |
29 |
|
|
Branch |
Columbus, OH |
United States |
Trucking |
4.2 |
28 |
|
|
Branch |
Nogales, AZ |
United States |
Trucking |
4.0 |
27 |
|
|
Subsidiary |
Bogota |
Colombia |
Miscellaneous Transportation |
0.0 |
27 |
|
|
Branch |
Cheektowaga, NY |
United States |
Trucking |
3.7 |
25 |
|
|
Subsidiary |
Amman |
Jordan |
Miscellaneous Transportation |
|
24 |
|
|
Subsidiary |
Phnom Penh |
Cambodia |
Miscellaneous Transportation |
|
23 |
|
|
Branch |
Hebron, KY |
United States |
Trucking |
3.1 |
21 |
|
|
Branch |
Tampa, FL |
United States |
Trucking |
3.0 |
20 |
|
|
Branch |
Kansas City, MO |
United States |
Trucking |
3.0 |
20 |
|
|
Branch |
Nashville, TN |
United States |
Trucking |
2.7 |
18 |
|
|
Branch |
St Louis, MO |
United States |
Trucking |
2.5 |
17 |
|
|
Branch |
Austin, TX |
United States |
Trucking |
2.2 |
15 |
|
|
Subsidiary |
Jessheim, Akershus |
Norway |
Miscellaneous Transportation |
|
15 |
|
|
Subsidiary |
Welshpool, WA |
Australia |
Miscellaneous Transportation |
|
15 |
|
|
Subsidiary |
Lisbon |
Portugal |
Miscellaneous Transportation |
16.5 |
14 |
|
|
Branch |
Coraopolis, PA |
United States |
Trucking |
1.8 |
12 |
|
|
Branch |
Romulus, MI |
United States |
Trucking |
1.8 |
12 |
|
|
Branch |
Orlando, FL |
United States |
Trucking |
1.6 |
11 |
|
|
Branch |
Sterling, VA |
United States |
Trucking |
1.6 |
11 |
|
|
Branch |
Franklin, WI |
United States |
Trucking |
1.3 |
9 |
|
|
Branch |
Morrisville, NC |
United States |
Trucking |
1.3 |
9 |
|
|
Branch |
Grand Rapids, MI |
United States |
Trucking |
1.2 |
8 |
|
|
Branch |
Port Huron, MI |
United States |
Trucking |
1.2 |
8 |
|
|
Branch |
Kentwood, MI |
United States |
Trucking |
1.2 |
8 |
|
|
Branch |
New Orleans, LA |
United States |
Trucking |
0.9 |
6 |
|
|
Branch |
Sumner, WA |
United States |
Trucking |
0.8 |
5 |
|
|
Branch |
Boise, ID |
United States |
Trucking |
0.7 |
5 |
|
|
Branch |
Seatac, WA |
United States |
Trucking |
0.7 |
5 |
|
|
Branch |
Airway Heights, WA |
United States |
Trucking |
0.7 |
5 |
|
|
Branch |
Tampa, FL |
United States |
Trucking |
0.7 |
5 |
|
|
Branch |
New York, NY |
United States |
Trucking |
0.7 |
5 |
|
|
Branch |
Seattle, WA |
United States |
Trucking |
0.7 |
5 |
|
|
Branch |
Doral, FL |
United States |
Trucking |
0.7 |
5 |
|
|
Branch |
Kent, WA |
United States |
Trucking |
0.7 |
5 |
|
|
Branch |
Rochester, NY |
United States |
Trucking |
0.7 |
5 |
|
|
Branch |
El Paso, TX |
United States |
Trucking |
0.7 |
5 |
|
|
Branch |
Milpitas, CA |
United States |
Business Services |
0.7 |
4 |
|
|
Branch |
Buffalo, NY |
United States |
Trucking |
0.6 |
4 |
|
|
Branch |
Huntsville, AL |
United States |
Trucking |
0.1 |
1 |
|
|
Branch |
Lewiston, NY |
United States |
Trucking |
0.1 |
1 |
|
|
Subsidiary |
Kowloon, HGK |
Hong Kong |
Miscellaneous Transportation |
770.8 |
|
|
|
Subsidiary |
Schwechat |
Austria |
Miscellaneous Transportation |
|
|
|
|
Subsidiary |
Carolina, PR |
United States |
Miscellaneous Transportation |
|
|
|
|
Subsidiary |
Athens |
Greece |
Miscellaneous Transportation |
|
|
|
|
Subsidiary |
Apodaca, Nuevo Leon |
Mexico |
Miscellaneous Transportation |
|
|
|
|
Subsidiary |
Beirut |
Lebanon |
Miscellaneous Transportation |
|
|
|
|
Subsidiary |
Chiasso |
Switzerland |
Miscellaneous Transportation |
|
|
|
|
Subsidiary |
Otopeni |
Romania |
Miscellaneous Transportation |
|
|
|
|
Subsidiary |
Lote A, Carolina |
Puerto Rico |
Miscellaneous Transportation |
|
|
|
|
Subsidiary |
Bentley, WA |
Australia |
Miscellaneous Transportation |
|
|
|
|
Subsidiary |
Lima |
Peru |
Miscellaneous Transportation |
|
|
|
|
Subsidiary |
Shanghai |
China |
Miscellaneous Transportation |
|
|
|
|
Subsidiary |
Alajuela |
Costa Rica |
Miscellaneous Transportation |
|
|
|
|
Subsidiary |
Manama |
Bahrain |
Miscellaneous Transportation |
|
|
|
|
Subsidiary |
Riyadh |
Saudi Arabia |
Miscellaneous Transportation |
|
|
|
|
Subsidiary |
Dubai, Dubai |
United Arab Emirates |
Miscellaneous Transportation |
|
|
|
|
Subsidiary |
Hull |
United Kingdom |
Miscellaneous Transportation |
|
|
|
|
Subsidiary |
Colombo |
Sri Lanka |
Miscellaneous Transportation |
|
|
|
|
Subsidiary |
Seattle, WA |
United States |
Miscellaneous Transportation |
|
|
Competitors Report
|
Company Name |
Location |
Employees |
Ownership |
|
Air Transport Services Group Inc. |
Wilmington, Ohio, United States |
1,770 |
Public |
|
APL Logistics, Inc. |
Scottsdale, Arizona, United States |
4,000 |
Private |
|
C.H. Robinson Worldwide, Inc. |
Eden Prairie, Minnesota, United States |
8,743 |
Public |
|
Ceva Group PLC |
London, United Kingdom |
50,737 |
Private |
|
CSX Corporation |
Jacksonville, Florida, United States |
31,000 |
Public |
|
Deutsche Post AG |
Bonn, Germany |
424,351 |
Public |
|
DHL International S.A./N.V. |
Brussels, Belgium |
1,500 |
Private |
|
FedEx Corporation |
Memphis, Tennessee, United States |
101,000 |
Public |
|
Hub Group Inc |
Downers Grove, Illinois, United States |
1,362 |
Public |
|
Hyundai Glovis Co Ltd |
Seoul, Korea, Republic of |
646 |
Public |
|
Kuehne + Nagel Inc. |
Jersey City, New Jersey, United States |
830 |
Private |
|
MITSUI-SOKO Co., Ltd. |
Tokyo, Japan |
3,392 |
Public |
|
Nippon Express Co Ltd |
Tokyo, Japan |
65,759 |
Public |
|
Pacer International, Inc. |
Dublin, Ohio, United States |
1,010 |
Public |
|
Panalpina WeltTransport (Holding) Ltd. |
Basel, Switzerland |
15,700 |
Public |
|
SCHENKER AG |
Essen, Nordrhein-Westfalen, Germany |
54,900 |
Public |
|
Sino-Global Shipping America, Ltd. |
Flushing, New York, United States |
38 |
Public |
|
TNT Express NV |
Hoofddorp, Netherlands |
71,130 |
Public |
|
UK Mail Group PLC |
Slough, United Kingdom |
2,587 |
Public |
|
United Parcel Service, Inc. |
Atlanta, Georgia, United States |
398,000 |
Public |
|
UTi Worldwide Inc. |
Long Beach, California, United States |
21,077 |
Public |
|
YAMATO HOLDINGS CO., LTD. |
Tokyo, Japan |
177,301 |
Public |
|
YRC Worldwide Inc. |
Overland Park, Kansas, United States |
32,000 |
Public |
executive report
|
Board of
Directors |
|
|
|
|
|||||||||||||
|
Chairman of the Board, Chief Executive Officer |
Chairman |
|
|||||||||||||
|
||||||||||||||||
|
Director |
Director/Board Member |
|
|
||||||||||||
|
Independent Director |
Director/Board Member |
|
|
||||||||||||
|
||||||||||||||||
|
President, Chief Operating Officer, Director |
Director/Board Member |
|
|
||||||||||||
|
||||||||||||||||
|
Independent Director |
Director/Board Member |
|
|
||||||||||||
|
||||||||||||||||
|
Independent Director |
Director/Board Member |
|
|
||||||||||||
|
||||||||||||||||
|
Independent Director |
Director/Board Member |
|
|
||||||||||||
|
||||||||||||||||
|
President - Asia Pacific, Director |
Director/Board Member |
|
|
||||||||||||
|
||||||||||||||||
|
Lead Independent Director |
Director/Board Member |
|
|
||||||||||||
|
||||||||||||||||
|
Director |
Director/Board Member |
|
|
||||||||||||
|
||||||||||||||||
|
Executives |
|
|
|
|
|||||||||||||
|
Chairman of the Board, Chief Executive Officer |
Chief Executive Officer |
|
|||||||||||||
|
||||||||||||||||
|
President & COO |
President |
|
|
||||||||||||
|
President, Chief Operating Officer, Director |
President |
|
|
||||||||||||
|
||||||||||||||||
|
President - Global Sales & Marketing |
Division Head Executive |
|
|
||||||||||||
|
||||||||||||||||
|
President - Europe, Africa, Near/Middle
East and Indian Subcontinent |
Division Head Executive |
|
|
||||||||||||
|
||||||||||||||||
|
President - The Americas |
Division Head Executive |
|
|
||||||||||||
|
||||||||||||||||
|
President - Asia Pacific, Director |
Division Head Executive |
|
|
||||||||||||
|
||||||||||||||||
|
Operations Executive - Air Customer Service |
Operations Executive |
|
|
||||||||||||
|
Project Manager of Corporate Is Operations |
Operations Executive |
|
|
||||||||||||
|
Operations Executive-Order Management |
Operations Executive |
|
|
||||||||||||
|
Customs Brokerage Operations Manager |
Operations Executive |
|
|
||||||||||||
|
Domestic Inbound Operations |
Operations Executive |
|
|
||||||||||||
|
Information Technology Operation Manager |
Operations Executive |
|
|
||||||||||||
|
Air and Ocean Operations |
Operations Executive |
|
|
||||||||||||
|
Operations Manager |
Operations Executive |
|
|
||||||||||||
|
Operations Manager |
Operations Executive |
|
|
||||||||||||
|
Operations - Ocean Services |
Operations Executive |
|
|
||||||||||||
|
Supervisor ( Operation ) |
Operations Executive |
|
|
||||||||||||
|
Operation Executive - Air Export |
Operations Executive |
|
|
||||||||||||
|
Director-Operations and Services Americas, Expedito |
Operations Executive |
|
|
||||||||||||
|
Domestic Night Operations |
Operations Executive |
|
|
||||||||||||
|
Unix Systems Administrator |
Administration Executive |
|
|
||||||||||||
|
Accounting Administration Manager |
Administration Executive |
|
|
||||||||||||
|
Business Manager |
Administration Executive |
|
|
||||||||||||
|
Sales and Marketing Admin |
Administration Executive |
|
|
||||||||||||
|
Manager - Administration |
Administration Executive |
|
|
||||||||||||
|
Business Manager |
Administration Executive |
|
|
||||||||||||
|
Administration Manager |
Administration Executive |
|
|
||||||||||||
|
Unix System Administrator |
Administration Executive |
|
|
||||||||||||
|
Information Systems Security |
Security |
|
|
||||||||||||
|
Supervisor of IT Security |
Security |
|
|
||||||||||||
|
Lead, Information Systems Security |
Security |
|
|
||||||||||||
|
Senior Vice President - General Counsel, Secretary |
Company Secretary |
|
|
||||||||||||
|
||||||||||||||||
|
Uk Financial Controller |
Finance Executive |
|
|
||||||||||||
|
Chief Financial Officer, Senior Vice President |
Finance Executive |
|
|
||||||||||||
|
||||||||||||||||
|
Domestic Cargo Services - Special Account Representative |
Accounting Executive |
|
|
||||||||||||
|
Director Account Management |
Accounting Executive |
|
|
||||||||||||
|
||||||||||||||||
|
Senior Accountant- Tax |
Accounting Executive |
|
|
||||||||||||
|
Account Coordinator |
Accounting Executive |
|
|
||||||||||||
|
Manager Account Management |
Accounting Executive |
|
|
||||||||||||
|
Accounts Receivable Representative Expeditors |
Accounting Executive |
|
|
||||||||||||
|
Brokerage Account Representative |
Accounting Executive |
|
|
||||||||||||
|
Accounting Manager |
Accounting Executive |
|
|
||||||||||||
|
Accounts Receivable Associate |
Accounting Executive |
|
|
||||||||||||
|
Director - Global Accounting Support Chq |
Accounting Executive |
|
|
||||||||||||
|
Senior Vice President - Corporate Controller |
Controller |
|
|
||||||||||||
|
||||||||||||||||
|
Uk and Ireland Recruitment Manager |
Human Resources Executive |
|
|
||||||||||||
|
Regional Trainer - India and Gulf States |
Training Executive |
|
|
||||||||||||
|
Training Director |
Training Executive |
|
|
||||||||||||
|
Training Coordinator |
Training Executive |
|
|
||||||||||||
|
Shift Trainer |
Training Executive |
|
|
||||||||||||
|
Customer Care and Risk Operations |
Customer Service Executive |
|
|
||||||||||||
|
Domestic Customer Service |
Customer Service Executive |
|
|
||||||||||||
|
Distribution Customer Service Representative |
Customer Service Executive |
|
|
||||||||||||
|
Customer Service Representative |
Customer Service Executive |
|
|
||||||||||||
|
Domestic Customer Service |
Customer Service Executive |
|
|
||||||||||||
|
Senior Manager of Is Customer Solutions |
Customer Service Executive |
|
|
||||||||||||
|
||||||||||||||||
|
Information Systems Customer Solutions Manager |
Customer Service Executive |
|
|
||||||||||||
|
Ace Distribution Customer Service |
Customer Service Executive |
|
|
||||||||||||
|
Customer Service Manager |
Customer Service Executive |
|
|
||||||||||||
|
Air Export Customer Service |
Customer Service Executive |
|
|
||||||||||||
|
Import Customer Service |
Customer Service Executive |
|
|
||||||||||||
|
Air Export Customer Service |
Customer Service Executive |
|
|
||||||||||||
|
Customer Service Lead |
Customer Service Executive |
|
|
||||||||||||
|
Ocean Import Customer Service Supervisor |
Customer Service Executive |
|
|
||||||||||||
|
Executive Customer Service - Air Exports |
Customer Service Executive |
|
|
||||||||||||
|
Air Export Customer Service |
Customer Service Executive |
|
|
||||||||||||
|
Customer Service Representative |
Customer Service Executive |
|
|
||||||||||||
|
Customer Solutions Manager |
Customer Service Executive |
|
|
||||||||||||
|
Distribution Customer Service Representative |
Customer Service Executive |
|
|
||||||||||||
|
Air Export Customer Service |
Customer Service Executive |
|
|
||||||||||||
|
Customer Retention and Development Manager |
Customer Service Executive |
|
|
||||||||||||
|
Ocean Export Customer Service International |
Customer Service Executive |
|
|
||||||||||||
|
Assistant Manager, Business Systems and Customer Solutions |
Customer Service Executive |
|
|
||||||||||||
|
Customer Service Representative |
Customer Service Executive |
|
|
||||||||||||
|
District Sales Executive |
Sales Executive |
|
|
||||||||||||
|
District Sales Executive - N. America |
Sales Executive |
|
|
||||||||||||
|
District Sales Support |
Sales Executive |
|
|
||||||||||||
|
Account Manager |
Sales Executive |
|
|
||||||||||||
|
Local Account Manager |
Sales Executive |
|
|
||||||||||||
|
Director Sales |
Sales Executive |
|
|
||||||||||||
|
Regional Account Manager |
Sales Executive |
|
|
||||||||||||
|
District Sales Manager |
Sales Executive |
|
|
||||||||||||
|
District Sales Executive |
Sales Executive |
|
|
||||||||||||
|
Route Sales Manager-Japan |
Sales Executive |
|
|
||||||||||||
|
Account Manager |
Sales Executive |
|
|
||||||||||||
|
||||||||||||||||
|
Corporate Account Manager |
Sales Executive |
|
|
||||||||||||
|
Corporate Account Manager |
Sales Executive |
|
|
||||||||||||
|
Regional Account Manager - Compliance |
Sales Executive |
|
|
||||||||||||
|
Regional Account Manager |
Sales Executive |
|
|
||||||||||||
|
Assistant District Sales Manager |
Sales Executive |
|
|
||||||||||||
|
District Sales Executive |
Sales Executive |
|
|
||||||||||||
|
Sales Manager |
Sales Executive |
|
|
||||||||||||
|
||||||||||||||||
|
District Sales |
Sales Executive |
|
|
||||||||||||
|
Manager Global Sales Bids |
International Sales Executive |
|
|
||||||||||||
|
||||||||||||||||
|
Global Sales Executive |
International Sales Executive |
|
|
||||||||||||
|
Global Account Manager |
International Sales Executive |
|
|
||||||||||||
|
Global Account Manager |
International Sales Executive |
|
|
||||||||||||
|
Global Sales Executive |
International Sales Executive |
|
|
||||||||||||
|
Air Export Manager |
International Executive |
|
|
||||||||||||
|
||||||||||||||||
|
Air Export Agent |
International Executive |
|
|
||||||||||||
|
Air Export Manager |
International Executive |
|
|
||||||||||||
|
District Manager - Expeditors International |
International Executive |
|
|
||||||||||||
|
Executive Vice President - Global Customs |
International Executive |
|
|
||||||||||||
|
||||||||||||||||
|
Ocean Export Supervisor |
International Executive |
|
|
||||||||||||
|
Export Manager |
International Executive |
|
|
||||||||||||
|
Ocean Export Manager |
International Executive |
|
|
||||||||||||
|
Air Export Supervisor |
International Executive |
|
|
||||||||||||
|
Air Export Gateway Manager |
International Executive |
|
|
||||||||||||
|
||||||||||||||||
|
Air Export Manager Chicago |
International Executive |
|
|
||||||||||||
|
||||||||||||||||
|
Global Manager- Retail Development |
International Executive |
|
|
||||||||||||
|
Export Supervisor |
International Executive |
|
|
||||||||||||
|
Ocean Manager - Expeditors International & Msp |
International Executive |
|
|
||||||||||||
|
Ocean Export Import Manager |
International Executive |
|
|
||||||||||||
|
Air Export Manager |
International Executive |
|
|
||||||||||||
|
Air Export Supervisor |
International Executive |
|
|
||||||||||||
|
Air Export Supervisor |
International Executive |
|
|
||||||||||||
|
Travel Manager Expeditors International |
International Executive |
|
|
||||||||||||
|
Import Transportation Manager - Expeditors International of Wa, Inc. |
International Executive |
|
|
||||||||||||
|
Webmaster |
E-Commerce Executive |
|
|
||||||||||||
|
Vice President American Marketing |
Marketing Executive |
|
|
||||||||||||
|
||||||||||||||||
|
Director of Marketing |
Marketing Executive |
|
|
||||||||||||
|
Manager of Information Systems Communications |
Corporate Communications Executive |
|
|
||||||||||||
|
Information Systems Purchasing Supervisor |
Information Executive |
|
|
||||||||||||
|
Management Information Systems Support-Ei-Sea |
Information Executive |
|
|
||||||||||||
|
Regional Information Systems Support Manager |
Information Executive |
|
|
||||||||||||
|
Director, It |
Information Executive |
|
|
||||||||||||
|
Information Technology Project Manager |
Information Executive |
|
|
||||||||||||
|
Executive Vice President, Chief Information Officer |
Information Executive |
|
|
||||||||||||
|
||||||||||||||||
|
Information Systems |
Information Executive |
|
|
||||||||||||
|
Information Technology Manager |
Information Executive |
|
|
||||||||||||
|
Regional Information Systems Manager |
Information Executive |
|
|
||||||||||||
|
Information Technology Developer |
Information Executive |
|
|
||||||||||||
|
Project Manager of Information Technology Applications |
Information Executive |
|
|
||||||||||||
|
Manager, Import Services |
Information Executive |
|
|
||||||||||||
|
Network Manager |
Network Management Executive |
|
|
||||||||||||
|
Supervisor, Web Development |
Network Management Executive |
|
|
||||||||||||
|
Network Architect |
Network Management Executive |
|
|
||||||||||||
|
System Administrator |
Network Management Executive |
|
|
||||||||||||
|
Director Database Architecture |
Engineering/Technical Executive |
|
|
||||||||||||
|
Supervisor, Software Development |
Engineering/Technical Executive |
|
|
||||||||||||
|
Developer |
Engineering/Technical Executive |
|
|
||||||||||||
|
DBA |
Engineering/Technical Executive |
|
|
||||||||||||
|
Dba Manager |
Engineering/Technical Executive |
|
|
||||||||||||
|
Software Developer |
Engineering/Technical Executive |
|
|
||||||||||||
|
Telecommunications Specialist |
Telecommunications Executive |
|
|
||||||||||||
|
Manager of Research |
Research & Development Executive |
|
|
||||||||||||
|
Research and Development Analyst |
Research & Development Executive |
|
|
||||||||||||
|
||||||||||||||||
|
Director, Product Development Ocean Services |
Product Management Executive |
|
|
||||||||||||
|
Domestic Cargo Services Product Manage... |
Product Management Executive |
|
|
||||||||||||
|
Customs Brokerage Product Manager |
Product Management Executive |
|
|
||||||||||||
|
Development Manager |
Business Development Executive |
|
|
||||||||||||
|
Development Manager |
Business Development Executive |
|
|
||||||||||||
|
Compliance Officer |
Legal Executive |
|
|
||||||||||||
|
Sec Reporting and Compliance Manage |
Legal Executive |
|
|
||||||||||||
|
Corporate Counsel |
Legal Executive |
|
|
||||||||||||
|
||||||||||||||||
|
Assistant Corporate Counsel |
Legal Executive |
|
|
||||||||||||
|
||||||||||||||||
|
Customs Compliance Helpdesk Representative |
Legal Executive |
|
|
||||||||||||
|
Assistant Manager - Distribution Services |
Logistics Executive |
|
|
||||||||||||
|
Import Transportation Manager |
Logistics Executive |
|
|
||||||||||||
|
Ocean Import Supervisor |
Logistics Executive |
|
|
||||||||||||
|
Import Brokerage Agent |
Logistics Executive |
|
|
||||||||||||
|
Import Manager |
Logistics Executive |
|
|
||||||||||||
|
Agent, Import Brokerage |
Logistics Executive |
|
|
||||||||||||
|
Import Brokerage Supervisor |
Logistics Executive |
|
|
||||||||||||
|
Import Supervisor |
Logistics Executive |
|
|
||||||||||||
|
Import Department |
Logistics Executive |
|
|
||||||||||||
|
Import Manager |
Logistics Executive |
|
|
||||||||||||
|
Air and Ocean Import Agent |
Logistics Executive |
|
|
||||||||||||
|
Warehouse Manager |
Logistics Executive |
|
|
||||||||||||
|
Ocean Import Manager |
Logistics Executive |
|
|
||||||||||||
|
Distribution Services - Sea |
Logistics Executive |
|
|
||||||||||||
|
Ocean Import Manager |
Logistics Executive |
|
|
||||||||||||
|
Air Import Manager |
Logistics Executive |
|
|
||||||||||||
|
Air and Ocean Import Cssv Agent |
Logistics Executive |
|
|
||||||||||||
|
Import Supervisor |
Logistics Executive |
|
|
||||||||||||
|
Supervisor Eio and Distribution |
Logistics Executive |
|
|
||||||||||||
|
Warehouse Manager Br Sec Representative |
Logistics Executive |
|
|
||||||||||||
|
Warehouse Manager |
Logistics Executive |
|
|
||||||||||||
|
Distribution Warehouse Supervisor |
Logistics Executive |
|
|
||||||||||||
|
Salesman In Office Expeditors International |
Merchandise Management Executive |
|
|
||||||||||||
|
Purchasing Director |
Purchasing Executive |
|
|
||||||||||||
|
Quality Assurance Specialist |
Quality Executive |
|
|
||||||||||||
|
Regional Claim and Insurance Manager |
Insurance Executive |
|
|
||||||||||||
|
North East Regional Insurance Manager-Jfk |
Insurance Executive |
|
|
||||||||||||
|
Country Manager - Ds |
Other |
|
|
||||||||||||
|
Executive Vice President - North America |
Other |
|
|
||||||||||||
|
||||||||||||||||
|
Manager Ocean Services |
Other |
|
|
||||||||||||
|
Edi Developer |
Other |
|
|
||||||||||||
|
Regional Vice President |
Other |
|
|
||||||||||||
|
||||||||||||||||
|
Senior Executive, Gateway |
Other |
|
|
||||||||||||
|
Customs Brokerage Manager |
Other |
|
|
||||||||||||
|
Domestic Cargo Services |
Other |
|
|
||||||||||||
|
Director Ocean Cargo |
Other |
|
|
||||||||||||
|
Customs Helpdesk |
Other |
|
|
||||||||||||
|
Ocean Manager |
Other |
|
|
||||||||||||
|
||||||||||||||||
|
Domestic Services Manager |
Other |
|
|
||||||||||||
|
Director Domestic Cargo Services |
Other |
|
|
||||||||||||
|
||||||||||||||||
|
Manager |
Other |
|
|
||||||||||||
|
Manager |
Other |
|
|
||||||||||||
|
Manager Ocean and Order Management Services Lax |
Other |
|
|
||||||||||||
|
Manager |
Other |
|
|
||||||||||||
|
Domestic Cargo Services Supervisor |
Other |
|
|
||||||||||||
|
Executive Vice President - North America |
Other |
|
|
||||||||||||
|
||||||||||||||||
|
Customs Brokerage |
Other |
|
|
||||||||||||
|
Branch Manager |
Other |
|
|
||||||||||||
|
Manager Order Management |
Other |
|
|
||||||||||||
|
Goodyear Capital Projects |
Other |
|
|
||||||||||||
|
Customs Brokerage Manager |
Other |
|
|
||||||||||||
|
North America |
Other |
|
|
||||||||||||
|
Director of Is Development |
Other |
|
|
||||||||||||
|
Senior Executive |
Other |
|
|
||||||||||||
|
Customs Brokerage Agent |
Other |
|
|
||||||||||||
|
Customs Brokerage Supervisor |
Other |
|
|
||||||||||||
|
Domestic Cargo Services Manager |
Other |
|
|
||||||||||||
|
District Manager |
Other |
|
|
||||||||||||
|
Manager - Edi Development |
Other |
|
|
||||||||||||
|
Ui Designer |
Other |
|
|
||||||||||||
|
Development Lead |
Other |
|
|
||||||||||||
|
Branch Manager |
Other |
|
|
||||||||||||
|
Senior Vice President-Air Cargo |
Other |
|
|
||||||||||||
|
Assistant Manager-Air Exports |
Other |
|
|
||||||||||||
|
Project Manager |
Other |
|
|
||||||||||||
|
Emp Relations Manager |
Other |
|
|
||||||||||||
|
||||||||||||||||
|
Documentation |
Other |
|
|
||||||||||||
|
Domestic Cargo Services Agent |
Other |
|
|
||||||||||||
|
Domestic Cargo Services - Agent |
Other |
|
|
||||||||||||
|
Sector C-6 |
Other |
|
|
||||||||||||
|
Expeditors |
Other |
|
|
||||||||||||
|
Ocean Manager Pdx |
Other |
|
|
||||||||||||
|
Sha - China Shanghai Branch |
Other |
|
|
||||||||||||
|
Department Manager |
Other |
|
|
||||||||||||
|
||||||||||||||||
|
District Slaes Manager |
Other |
|
|
||||||||||||
|
Director Freight Payment |
Other |
|
|
||||||||||||
|
Domestic Cargo Services Manager |
Other |
|
|
||||||||||||
|
Director, Ocean & Cargo Management Services |
Other |
|
|
||||||||||||
|
||||||||||||||||
|
Migration Architect |
Other |
|
|
||||||||||||
|
Mangager |
Other |
|
|
||||||||||||
|
||||||||||||||||
|
Brokerage Manager |
Other |
|
|
||||||||||||
|
Branch Process Analyst |
Other |
|
|
||||||||||||
|
Director |
Other |
|
|
||||||||||||
|
Branch Manager |
Other |
|
|
||||||||||||
|
Retention Manager |
Other |
|
|
||||||||||||
|
Domestic Cargo Services - Supervisor |
Other |
|
|
||||||||||||
|
Isf Agent |
Other |
|
|
||||||||||||
|
Other |
Other |
|
|
||||||||||||
|
Expeditors Int'l |
Other |
|
|
||||||||||||
|
Supervisor |
Other |
|
|
||||||||||||
|
Executive Member |
Other |
|
|
||||||||||||
|
Domestic Cargo Services - Supervisor |
Other |
|
|
||||||||||||
|
Manager-Tcs |
Other |
|
|
||||||||||||
|
Senior Development Manager |
Other |
|
|
||||||||||||
|
District Manager |
Other |
|
|
||||||||||||
|
||||||||||||||||
|
Customs Brokerage Agent |
Other |
|
|
||||||||||||
|
Area Manager |
Other |
|
|
||||||||||||
|
Supervisor Order Management |
Other |
|
|
||||||||||||
|
Senior Vice President - Air Cargo |
Other |
|
|
||||||||||||
|
||||||||||||||||
|
Director, Customs, The Americas |
Other |
|
|
||||||||||||
|
Regional Manager Healthcare Industry |
Other |
|
|
||||||||||||
|
District Manager |
Other |
|
|
||||||||||||
|
Senior Vice President - Ocean Services |
Other |
|
|
||||||||||||
|
||||||||||||||||
|
Ocean Brokerage Supervisor |
Other |
|
|
||||||||||||
|
Domestic Cargo Services Manager |
Other |
|
|
||||||||||||
|
Customer Service, Customs Brokerage |
Other |
|
|
||||||||||||
|
Development Manager, Infrastructure Team |
Other |
|
|
||||||||||||
|
||||||||||||||||
|
Brokerage Lead Agent |
Other |
|
|
||||||||||||
Significant Developments
Expeditors International of Washington, Inc. Announces Semi-Annual Cash Dividend Of $.28 May 03, 2012
Expeditors International of Washington, Inc. announced that its Board of Directors has declared a semi-annual cash dividend of $.28 per share, payable on June 15, 2012, to shareholders of record as of June 1, 2012.
Expeditors International of Washington, Inc. Issues Q1 2012 EPS Guidance Below Analysts' Estimates Apr 20, 2012
Expeditors International of Washington, Inc. announced that preliminary results indicate its first quarter 2012 net earnings attributable to shareholders are expected to fall in the range of $.35-$.37 per share (EPS). According to I/B/E/S Estimates, analysts on an average are expecting the Company to report EPS of $0.43 for the first quarter of 2012.
Expeditors International of Washington, Inc. Receives EUR4.14 Million Fine In European Commission Freight Forwarding Case Mar 29, 2012
Expeditors International of Washington, Inc. announced that it is the recipient of a ?4.14 million (approximately $5.5 million) fine issued by the European Commission ("EC") pursuant to proceedings initiated by the EC's February 5, 2010 Statement of Objections, which included allegations of anti-competitive behavior. The EC's decision levied fines against international freight forwarders based on four separate infringements: New Export System ("NES"), Advanced Manifest System ("AMS"), Currency Adjustment Factor ("CAF") and Peak Season Surcharge ("PSS"). The EC's allegations against Expeditors were limited to an alleged unlawful agreement for only PSS, on the South China/Hong Kong to Europe route for the period of September 21, 2005 to June 23, 2006, which surcharges represented less than $1.5 million in the aggregate over that time period. Under the EC rules, the company must pay the fine or provide a bank guarantee even if it makes a decision to appeal the EC's decision, once it receives and analyzes the EC's ruling in its entirety. The company expects to accrue the fine amount in its first quarter 2012 financial results.
Expeditors International of Washington Announces Semi-Annual Cash Dividend Of $0.25 Nov 02, 2011
Expeditors International of Washington announced that its Board of Directors has declared a semi-annual cash dividend of $.25 per share, payable on December 15, 2011 to shareholders of record as of December 1, 2011.
Annual Income Statement
Financials in: USD (mil)
Except for share items (millions) and per share items (actual units)
|
|
31-Dec-2011 |
31-Dec-2010 |
31-Dec-2009 |
31-Dec-2008 |
31-Dec-2007 |
|
Period Length |
12 Months |
12 Months |
12 Months |
12 Months |
12 Months |
|
UpdateType/Date |
Updated Normal |
Updated Normal |
Updated Normal |
Updated Normal |
Updated Normal |
|
Filed Currency |
USD |
USD |
USD |
USD |
USD |
|
Exchange Rate
(Period Average) |
1 |
1 |
1 |
1 |
1 |
|
Auditor |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
|
Auditor Opinion |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
|
|
|
|
|
|
|
|
Net Sales |
6,150.5 |
5,967.6 |
4,092.3 |
5,633.9 |
5,235.2 |
|
Revenue |
6,150.5 |
5,967.6 |
4,092.3 |
5,633.9 |
5,235.2 |
|
Total Revenue |
6,150.5 |
5,967.6 |
4,092.3 |
5,633.9 |
5,235.2 |
|
|
|
|
|
|
|
|
Cost of Revenue |
4,254.0 |
4,274.8 |
2,709.5 |
4,030.6 |
3,782.2 |
|
Cost of Revenue, Total |
4,254.0 |
4,274.8 |
2,709.5 |
4,030.6 |
3,782.2 |
|
Gross Profit |
1,896.5 |
1,692.8 |
1,382.8 |
1,603.3 |
1,453.0 |
|
|
|
|
|
|
|
|
Selling/General/Administrative Expense |
123.6 |
109.3 |
100.6 |
114.8 |
106.4 |
|
Labor & Related Expense |
993.4 |
894.1 |
774.2 |
863.8 |
791.9 |
|
Total Selling/General/Administrative Expenses |
1,117.0 |
1,003.4 |
874.8 |
978.6 |
898.3 |
|
Depreciation |
36.8 |
36.9 |
40.0 |
40.0 |
39.3 |
|
Depreciation/Amortization |
36.8 |
36.9 |
40.0 |
40.0 |
39.3 |
|
Other Operating Expense |
124.4 |
105.3 |
82.9 |
111.5 |
92.0 |
|
Other Operating Expenses, Total |
124.4 |
105.3 |
82.9 |
111.5 |
92.0 |
|
Total Operating Expense |
5,532.2 |
5,420.3 |
3,707.3 |
5,160.7 |
4,811.8 |
|
|
|
|
|
|
|
|
Operating Income |
618.3 |
547.2 |
385.0 |
473.1 |
423.4 |
|
|
|
|
|
|
|
|
Interest Expense -
Non-Operating |
-1.0 |
-0.6 |
-0.5 |
-0.2 |
- |
|
Interest Expense, Net Non-Operating |
-1.0 |
-0.6 |
-0.5 |
-0.2 |
- |
|
Interest Income -
Non-Operating |
10.2 |
7.0 |
10.2 |
21.1 |
22.3 |
|
Interest/Investment Income - Non-Operating |
10.2 |
7.0 |
10.2 |
21.1 |
22.3 |
|
Interest Income (Expense) - Net Non-Operating |
- |
- |
- |
- |
0.0 |
|
Interest Income (Expense) - Net Non-Operating Total |
9.3 |
6.4 |
9.7 |
20.9 |
22.4 |
|
Other Non-Operating Income (Expense) |
10.4 |
10.4 |
8.2 |
5.5 |
3.9 |
|
Other, Net |
10.4 |
10.4 |
8.2 |
5.5 |
3.9 |
|
Income Before Tax |
638.0 |
564.1 |
402.9 |
499.6 |
449.7 |
|
|
|
|
|
|
|
|
Total Income Tax |
251.8 |
219.9 |
162.5 |
196.6 |
179.8 |
|
Income After Tax |
386.2 |
344.2 |
240.4 |
303.0 |
269.9 |
|
|
|
|
|
|
|
|
Minority Interest |
-0.6 |
0.0 |
-0.2 |
-2.0 |
-0.7 |
|
Net Income Before Extraord Items |
385.7 |
344.2 |
240.2 |
301.0 |
269.2 |
|
Net Income |
385.7 |
344.2 |
240.2 |
301.0 |
269.2 |
|
|
|
|
|
|
|
|
Income Available to Common Excl Extraord Items |
385.7 |
344.2 |
240.2 |
301.0 |
269.2 |
|
|
|
|
|
|
|
|
Income Available to Common Incl Extraord Items |
385.7 |
344.2 |
240.2 |
301.0 |
269.2 |
|
|
|
|
|
|
|
|
Basic/Primary Weighted Average Shares |
212.1 |
212.3 |
212.1 |
212.8 |
213.3 |
|
Basic EPS Excl Extraord Items |
1.82 |
1.62 |
1.13 |
1.41 |
1.26 |
|
Basic/Primary EPS Incl Extraord Items |
1.82 |
1.62 |
1.13 |
1.41 |
1.26 |
|
Dilution Adjustment |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Diluted Net Income |
385.7 |
344.2 |
240.2 |
301.0 |
269.2 |
|
Diluted Weighted Average Shares |
215.0 |
216.4 |
216.5 |
219.2 |
221.8 |
|
Diluted EPS Excl Extraord Items |
1.79 |
1.59 |
1.11 |
1.37 |
1.21 |
|
Diluted EPS Incl Extraord Items |
1.79 |
1.59 |
1.11 |
1.37 |
1.21 |
|
Dividends per Share - Common Stock Primary Issue |
0.50 |
0.40 |
0.38 |
0.32 |
0.28 |
|
Gross Dividends - Common Stock |
106.0 |
84.9 |
80.6 |
68.1 |
59.7 |
|
Interest Expense, Supplemental |
1.0 |
0.6 |
0.5 |
0.2 |
- |
|
Depreciation, Supplemental |
36.8 |
36.9 |
40.0 |
40.0 |
39.3 |
|
Normalized Income Before Tax |
638.0 |
564.1 |
402.9 |
499.6 |
449.7 |
|
|
|
|
|
|
|
|
Inc Tax Ex Impact of Sp Items |
251.8 |
219.9 |
162.5 |
196.6 |
179.8 |
|
Normalized Income After Tax |
386.2 |
344.2 |
240.4 |
303.0 |
269.9 |
|
|
|
|
|
|
|
|
Normalized Inc. Avail to Com. |
385.7 |
344.2 |
240.2 |
301.0 |
269.2 |
|
|
|
|
|
|
|
|
Basic Normalized EPS |
1.82 |
1.62 |
1.13 |
1.41 |
1.26 |
|
Diluted Normalized EPS |
1.79 |
1.59 |
1.11 |
1.37 |
1.21 |
|
Amort of Intangibles, Supplemental |
1.2 |
1.4 |
1.5 |
1.6 |
1.5 |
|
Rental Expenses |
59.0 |
54.0 |
52.6 |
54.1 |
48.2 |
|
Reported Operating Profit |
- |
- |
- |
473.1 |
423.4 |
|
Normalized EBIT |
618.3 |
547.2 |
385.0 |
473.1 |
423.4 |
|
Normalized EBITDA |
656.3 |
585.5 |
426.6 |
514.8 |
464.2 |
|
Current Tax - Domestic |
100.5 |
76.7 |
62.9 |
65.9 |
65.8 |
|
Current Tax - Foreign |
135.2 |
119.0 |
90.3 |
101.9 |
85.2 |
|
Current Tax - Local |
20.2 |
13.6 |
10.9 |
12.5 |
9.8 |
|
Current Tax - Total |
255.9 |
209.3 |
164.1 |
180.2 |
160.8 |
|
Deferred Tax - Domestic |
-4.3 |
10.2 |
-1.4 |
16.0 |
18.3 |
|
Deferred Tax - Foreign |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Deferred Tax - Local |
0.3 |
0.4 |
-0.2 |
0.4 |
0.7 |
|
Deferred Tax - Total |
-4.1 |
10.6 |
-1.6 |
16.4 |
19.0 |
|
Income Tax - Total |
251.8 |
219.9 |
162.5 |
196.6 |
179.8 |
|
Defined Contribution Expense - Domestic |
6.3 |
6.1 |
6.1 |
6.2 |
6.8 |
|
Total Pension Expense |
6.3 |
6.1 |
6.1 |
6.2 |
6.8 |
Annual Balance Sheet
Financials in: USD (mil)
|
|
31-Dec-2011 |
31-Dec-2010 |
31-Dec-2009 |
31-Dec-2008 |
31-Dec-2007 |
|
UpdateType/Date |
Updated Normal |
Updated Normal |
Updated Normal |
Updated Normal |
Updated Normal |
|
Filed Currency |
USD |
USD |
USD |
USD |
USD |
|
Exchange Rate |
1 |
1 |
1 |
1 |
1 |
|
Auditor |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
|
Auditor Opinion |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
|
|
|
|
|
|
|
|
Cash & Equivalents |
1,294.4 |
1,084.5 |
925.9 |
741.0 |
574.6 |
|
Short Term Investments |
0.5 |
0.5 |
0.7 |
0.7 |
0.7 |
|
Cash and Short Term Investments |
1,294.8 |
1,085.0 |
926.6 |
741.7 |
575.3 |
|
Accounts Receivable -
Trade, Gross |
945.1 |
1,018.5 |
824.6 |
802.6 |
948.3 |
|
Provision for Doubtful
Accounts |
-10.4 |
-14.6 |
-14.2 |
-14.4 |
-14.8 |
|
Trade Accounts Receivable - Net |
934.8 |
1,003.9 |
810.4 |
788.2 |
933.5 |
|
Total Receivables, Net |
934.8 |
1,003.9 |
810.4 |
788.2 |
933.5 |
|
Deferred Income Tax - Current Asset |
10.4 |
8.7 |
8.3 |
8.0 |
8.3 |
|
Other Current Assets |
46.9 |
42.8 |
42.5 |
35.5 |
17.6 |
|
Other Current Assets, Total |
57.3 |
51.5 |
50.9 |
43.5 |
25.9 |
|
Total Current Assets |
2,286.9 |
2,140.4 |
1,787.8 |
1,573.4 |
1,534.7 |
|
|
|
|
|
|
|
|
Buildings |
400.5 |
372.8 |
372.5 |
351.0 |
337.1 |
|
Land/Improvements |
167.0 |
163.3 |
165.5 |
160.3 |
178.8 |
|
Machinery/Equipment |
233.4 |
215.1 |
205.8 |
193.8 |
185.1 |
|
Construction in
Progress |
34.3 |
29.2 |
16.3 |
16.0 |
11.1 |
|
Property/Plant/Equipment - Gross |
835.3 |
780.3 |
760.1 |
721.2 |
712.1 |
|
Accumulated Depreciation |
-296.5 |
-281.7 |
-264.4 |
-228.0 |
-214.2 |
|
Property/Plant/Equipment - Net |
538.8 |
498.6 |
495.7 |
493.1 |
497.9 |
|
Goodwill - Gross |
- |
- |
8.7 |
8.7 |
8.7 |
|
Accumulated Goodwill Amortization |
- |
- |
-0.8 |
-0.8 |
-0.8 |
|
Goodwill, Net |
7.9 |
7.9 |
7.9 |
7.9 |
7.9 |
|
Intangibles - Gross |
22.8 |
22.6 |
22.1 |
22.2 |
21.6 |
|
Accumulated Intangible Amortization |
-20.1 |
-18.9 |
-17.1 |
-15.6 |
-13.8 |
|
Intangibles, Net |
2.6 |
3.7 |
4.9 |
6.5 |
7.8 |
|
Other Long Term Assets |
30.6 |
28.5 |
27.3 |
19.9 |
20.7 |
|
Other Long Term Assets, Total |
30.6 |
28.5 |
27.3 |
19.9 |
20.7 |
|
Total Assets |
2,866.8 |
2,679.2 |
2,323.7 |
2,100.8 |
2,069.1 |
|
|
|
|
|
|
|
|
Accounts Payable |
606.6 |
652.2 |
546.7 |
491.8 |
613.1 |
|
Accrued Expenses |
169.4 |
177.9 |
145.5 |
150.5 |
129.7 |
|
Notes Payable/Short Term Debt |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Income Taxes Payable |
20.1 |
31.9 |
16.2 |
28.0 |
27.0 |
|
Other Current liabilities, Total |
20.1 |
31.9 |
16.2 |
28.0 |
27.0 |
|
Total Current Liabilities |
796.1 |
862.0 |
708.4 |
670.3 |
769.8 |
|
|
|
|
|
|
|
|
Total Long Term Debt |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Total Debt |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
|
|
|
|
|
|
|
Deferred Income Tax - LT Liability |
60.6 |
69.0 |
54.0 |
46.6 |
55.5 |
|
Deferred Income Tax |
60.6 |
69.0 |
54.0 |
46.6 |
55.5 |
|
Minority Interest |
6.4 |
7.2 |
8.3 |
17.5 |
17.2 |
|
Total Liabilities |
863.2 |
938.3 |
770.7 |
734.4 |
842.5 |
|
|
|
|
|
|
|
|
Preferred Stock - Non Redeemable |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Preferred Stock - Non Redeemable, Net |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Common Stock |
2.1 |
2.1 |
2.1 |
2.1 |
2.1 |
|
Common Stock |
2.1 |
2.1 |
2.1 |
2.1 |
2.1 |
|
Additional Paid-In Capital |
13.3 |
13.4 |
18.3 |
7.2 |
50.0 |
|
Retained Earnings (Accumulated Deficit) |
1,991.2 |
1,717.2 |
1,532.0 |
1,372.4 |
1,143.5 |
|
Other Comprehensive Income |
-3.0 |
8.1 |
0.6 |
-15.2 |
31.0 |
|
Other Equity, Total |
-3.0 |
8.1 |
0.6 |
-15.2 |
31.0 |
|
Total Equity |
2,003.6 |
1,740.9 |
1,553.0 |
1,366.4 |
1,226.6 |
|
|
|
|
|
|
|
|
Total Liabilities & Shareholders’ Equity |
2,866.8 |
2,679.2 |
2,323.7 |
2,100.8 |
2,069.1 |
|
|
|
|
|
|
|
|
Shares Outstanding - Common Stock Primary
Issue |
212.0 |
212.0 |
212.0 |
212.0 |
213.0 |
|
Total Common Shares Outstanding |
212.0 |
212.0 |
212.0 |
212.0 |
213.0 |
|
Treasury Shares - Common Stock Primary Issue |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Employees |
13,590 |
12,880 |
12,010 |
12,580 |
12,310 |
|
Number of Common Shareholders |
1,184 |
1,347 |
1,470 |
7,055 |
133,635 |
|
Accumulated Goodwill Amortization Suppl. |
- |
- |
0.8 |
0.8 |
0.8 |
|
Accumulated Intangible Amort, Suppl. |
20.1 |
18.9 |
17.1 |
15.6 |
13.8 |
|
Total Operating Leases, Supplemental |
118.6 |
128.2 |
134.9 |
84.9 |
78.4 |
|
Operating Lease Payments Due in Year 1 |
45.0 |
39.2 |
41.1 |
33.7 |
37.4 |
|
Operating Lease Payments Due in Year 2 |
31.9 |
30.7 |
28.4 |
22.4 |
20.0 |
|
Operating Lease Payments Due in Year 3 |
18.4 |
23.3 |
22.8 |
12.1 |
10.8 |
|
Operating Lease Payments Due in Year 4 |
9.5 |
15.4 |
17.4 |
8.5 |
4.9 |
|
Operating Lease Payments Due in Year 5 |
6.6 |
8.0 |
10.0 |
6.2 |
2.6 |
|
Operating Lease Pymts. Due in 2-3 Years |
50.4 |
54.0 |
51.3 |
34.5 |
30.8 |
|
Operating Lease Pymts. Due in 4-5 Years |
16.1 |
23.4 |
27.3 |
14.6 |
7.5 |
|
Oper. Lse. Pymts. Due in Year 6 & Beyond |
7.2 |
11.4 |
15.2 |
2.1 |
2.7 |
Annual Cash Flows
Financials in: USD (mil)
|
|
31-Dec-2011 |
31-Dec-2010 |
31-Dec-2009 |
31-Dec-2008 |
31-Dec-2007 |
|
Period Length |
12 Months |
12 Months |
12 Months |
12 Months |
12 Months |
|
UpdateType/Date |
Updated Normal |
Updated Normal |
Updated Normal |
Reclassified
Normal |
Reclassified
Normal |
|
Filed Currency |
USD |
USD |
USD |
USD |
USD |
|
Exchange Rate (Period
Average) |
1 |
1 |
1 |
1 |
1 |
|
Auditor |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
|
Auditor Opinion |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
|
|
|
|
|
|
|
|
Net Income/Starting Line |
386.2 |
344.2 |
240.4 |
303.0 |
269.9 |
|
Depreciation |
36.8 |
36.9 |
40.0 |
40.0 |
39.3 |
|
Depreciation/Depletion |
36.8 |
36.9 |
40.0 |
40.0 |
39.3 |
|
Amortization of Intangibles |
1.2 |
1.4 |
1.5 |
1.6 |
1.5 |
|
Amortization |
1.2 |
1.4 |
1.5 |
1.6 |
1.5 |
|
Deferred Taxes |
-4.1 |
10.6 |
-1.6 |
16.4 |
19.0 |
|
Unusual Items |
0.4 |
-0.3 |
0.0 |
-0.7 |
-1.1 |
|
Other Non-Cash Items |
40.3 |
23.3 |
34.2 |
35.9 |
17.8 |
|
Non-Cash Items |
40.7 |
23.0 |
34.2 |
35.2 |
16.7 |
|
Accounts Receivable |
46.9 |
-188.8 |
-1.1 |
85.8 |
-85.0 |
|
Other Assets |
-6.5 |
-1.4 |
0.2 |
-1.0 |
-0.4 |
|
Payable/Accrued |
-40.8 |
130.1 |
29.9 |
-66.5 |
46.9 |
|
Taxes Payable |
-3.2 |
39.5 |
-12.7 |
-5.6 |
4.7 |
|
Changes in Working Capital |
-3.6 |
-20.5 |
16.3 |
12.8 |
-33.7 |
|
Cash from Operating Activities |
457.1 |
395.5 |
330.8 |
409.0 |
312.6 |
|
|
|
|
|
|
|
|
Purchase of Fixed Assets |
-78.1 |
-42.4 |
-34.7 |
-59.7 |
-82.8 |
|
Capital Expenditures |
-78.1 |
-42.4 |
-34.7 |
-59.7 |
-82.8 |
|
Sale of Fixed Assets |
0.2 |
0.4 |
0.3 |
0.4 |
0.5 |
|
Investment, Net |
0.0 |
0.2 |
0.0 |
-0.1 |
0.0 |
|
Other Investing Cash Flow |
-2.4 |
-0.3 |
-7.0 |
0.2 |
-5.7 |
|
Other Investing Cash Flow Items, Total |
-2.2 |
0.2 |
-6.6 |
0.5 |
-5.2 |
|
Cash from Investing Activities |
-80.3 |
-42.2 |
-41.3 |
-59.2 |
-88.0 |
|
|
|
|
|
|
|
|
Other Financing Cash Flow |
4.3 |
22.8 |
0.8 |
10.1 |
27.8 |
|
Financing Cash Flow Items |
4.3 |
22.8 |
0.8 |
10.1 |
27.8 |
|
Cash Dividends Paid - Common |
-106.0 |
-84.9 |
-80.6 |
-68.1 |
-59.7 |
|
Total Cash Dividends Paid |
-106.0 |
-84.9 |
-80.6 |
-68.1 |
-59.7 |
|
Sale/Issuance of
Common |
56.6 |
99.8 |
46.9 |
51.5 |
65.0 |
|
Repurchase/Retirement
of Common |
-112.1 |
-246.3 |
-84.5 |
-154.2 |
-207.6 |
|
Common Stock, Net |
-55.4 |
-146.5 |
-37.6 |
-102.7 |
-142.6 |
|
Issuance (Retirement) of Stock, Net |
-55.4 |
-146.5 |
-37.6 |
-102.7 |
-142.6 |
|
Cash from Financing Activities |
-157.1 |
-208.6 |
-117.3 |
-160.7 |
-174.6 |
|
|
|
|
|
|
|
|
Foreign Exchange Effects |
-9.8 |
13.8 |
12.8 |
-22.6 |
13.2 |
|
Net Change in Cash |
209.9 |
158.5 |
184.9 |
166.4 |
63.2 |
|
|
|
|
|
|
|
|
Net Cash - Beginning Balance |
1,084.5 |
925.9 |
741.0 |
574.6 |
511.4 |
|
Net Cash - Ending Balance |
1,294.4 |
1,084.5 |
925.9 |
741.0 |
574.6 |
|
Cash Interest Paid |
0.3 |
0.1 |
0.5 |
0.2 |
0.1 |
|
Cash Taxes Paid |
266.6 |
171.6 |
158.7 |
172.1 |
146.4 |
Annual Income Statement
Financials in: USD (mil)
Except for share items (millions) and per share items (actual units)
|
|
31-Dec-2011 |
31-Dec-2010 |
31-Dec-2009 |
31-Dec-2008 |
31-Dec-2007 |
|
Period Length |
12 Months |
12 Months |
12 Months |
12 Months |
12 Months |
|
UpdateType/Date |
Updated Normal |
Updated Normal |
Updated Normal |
Updated Normal |
Updated Normal |
|
Filed Currency |
USD |
USD |
USD |
USD |
USD |
|
Exchange Rate
(Period Average) |
1 |
1 |
1 |
1 |
1 |
|
Auditor |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
|
Auditor Opinion |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
|
|
|
|
|
|
|
|
Airfreight |
2,893.5 |
2,821.8 |
1,831.3 |
2,541.4 |
2,407.6 |
|
Ocean Freight |
1,878.6 |
1,955.4 |
1,297.7 |
1,991.0 |
1,820.6 |
|
Customs brokerage and other services |
1,378.4 |
1,190.3 |
963.3 |
1,101.5 |
1,007.0 |
|
Total Revenue |
6,150.5 |
5,967.6 |
4,092.3 |
5,633.9 |
5,235.2 |
|
|
|
|
|
|
|
|
Airfreight |
2,193.1 |
2,181.6 |
1,341.8 |
1,962.6 |
1,879.4 |
|
Ocean Freight |
1,443.2 |
1,569.9 |
973.5 |
1,596.3 |
1,473.9 |
|
Custom Brokerage |
617.7 |
523.3 |
394.2 |
471.7 |
428.8 |
|
Salaries |
993.4 |
894.1 |
774.2 |
863.8 |
791.9 |
|
Rent and Occupancy |
84.7 |
77.2 |
74.3 |
77.0 |
67.7 |
|
Depreciation/Amort. |
36.8 |
36.9 |
40.0 |
40.0 |
39.3 |
|
Selling/Promotion |
39.0 |
32.1 |
26.3 |
37.8 |
38.7 |
|
Other |
124.4 |
105.3 |
82.9 |
111.5 |
92.0 |
|
Total Operating Expense |
5,532.2 |
5,420.3 |
3,707.3 |
5,160.7 |
4,811.8 |
|
|
|
|
|
|
|
|
Interest expense, Net |
- |
- |
- |
- |
0.0 |
|
Interest Income |
10.2 |
7.0 |
10.2 |
21.1 |
22.3 |
|
Interest Expense |
-1.0 |
-0.6 |
-0.5 |
-0.2 |
- |
|
Other, Net |
10.4 |
10.4 |
8.2 |
5.5 |
3.9 |
|
Net Income Before Taxes |
638.0 |
564.1 |
402.9 |
499.6 |
449.7 |
|
|
|
|
|
|
|
|
Provision for Income Taxes |
251.8 |
219.9 |
162.5 |
196.6 |
179.8 |
|
Net Income After Taxes |
386.2 |
344.2 |
240.4 |
303.0 |
269.9 |
|
|
|
|
|
|
|
|
Minority Interest |
-0.6 |
0.0 |
-0.2 |
-2.0 |
-0.7 |
|
Net Income Before Extra. Items |
385.7 |
344.2 |
240.2 |
301.0 |
269.2 |
|
Net Income |
385.7 |
344.2 |
240.2 |
301.0 |
269.2 |
|
|
|
|
|
|
|
|
Income Available to Com Excl ExtraOrd |
385.7 |
344.2 |
240.2 |
301.0 |
269.2 |
|
|
|
|
|
|
|
|
Income Available to Com Incl ExtraOrd |
385.7 |
344.2 |
240.2 |
301.0 |
269.2 |
|
|
|
|
|
|
|
|
Basic Weighted Average Shares |
212.1 |
212.3 |
212.1 |
212.8 |
213.3 |
|
Basic EPS Excluding ExtraOrdinary Items |
1.82 |
1.62 |
1.13 |
1.41 |
1.26 |
|
Basic EPS Including ExtraOrdinary Item |
1.82 |
1.62 |
1.13 |
1.41 |
1.26 |
|
Dilution Adjustment |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Diluted Net Income |
385.7 |
344.2 |
240.2 |
301.0 |
269.2 |
|
Diluted Weighted Average Shares |
215.0 |
216.4 |
216.5 |
219.2 |
221.8 |
|
Diluted EPS Excluding ExtraOrd Items |
1.79 |
1.59 |
1.11 |
1.37 |
1.21 |
|
Diluted EPS Including ExtraOrd Items |
1.79 |
1.59 |
1.11 |
1.37 |
1.21 |
|
DPS-Common Stock |
0.50 |
0.40 |
0.38 |
0.32 |
0.28 |
|
Gross Dividends - Common Stock |
106.0 |
84.9 |
80.6 |
68.1 |
59.7 |
|
Normalized Income Before Taxes |
638.0 |
564.1 |
402.9 |
499.6 |
449.7 |
|
|
|
|
|
|
|
|
Inc Tax Ex Impact of Sp Items |
251.8 |
219.9 |
162.5 |
196.6 |
179.8 |
|
Normalized Income After Taxes |
386.2 |
344.2 |
240.4 |
303.0 |
269.9 |
|
|
|
|
|
|
|
|
Normalized Inc. Avail to Com. |
385.7 |
344.2 |
240.2 |
301.0 |
269.2 |
|
|
|
|
|
|
|
|
Basic Normalized EPS |
1.82 |
1.62 |
1.13 |
1.41 |
1.26 |
|
Diluted Normalized EPS |
1.79 |
1.59 |
1.11 |
1.37 |
1.21 |
|
Interest Expense |
1.0 |
0.6 |
0.5 |
0.2 |
- |
|
Depreciation |
36.8 |
36.9 |
40.0 |
40.0 |
39.3 |
|
Amortization of Intangibles |
1.2 |
1.4 |
1.5 |
1.6 |
1.5 |
|
Rental Expense |
59.0 |
54.0 |
52.6 |
54.1 |
48.2 |
|
Current - Federal |
100.5 |
76.7 |
62.9 |
65.9 |
65.8 |
|
Current - State |
20.2 |
13.6 |
10.9 |
12.5 |
9.8 |
|
Current - Foreign |
135.2 |
119.0 |
90.3 |
101.9 |
85.2 |
|
Current Tax - Total |
255.9 |
209.3 |
164.1 |
180.2 |
160.8 |
|
Deferred - Federal |
-4.3 |
10.2 |
-1.4 |
16.0 |
18.3 |
|
Deferred - State |
0.3 |
0.4 |
-0.2 |
0.4 |
0.7 |
|
Deferred - Foreign |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Deferred Tax - Total |
-4.1 |
10.6 |
-1.6 |
16.4 |
19.0 |
|
Income Tax - Total |
251.8 |
219.9 |
162.5 |
196.6 |
179.8 |
|
Operating income |
- |
- |
- |
473.1 |
423.4 |
|
Employee Savings Plans - Pension |
6.3 |
6.1 |
6.1 |
6.2 |
6.8 |
|
Total Pension Expense |
6.3 |
6.1 |
6.1 |
6.2 |
6.8 |
Annual Balance Sheet
Financials in: USD (mil)
|
|
31-Dec-2011 |
31-Dec-2010 |
31-Dec-2009 |
31-Dec-2008 |
31-Dec-2007 |
|
UpdateType/Date |
Updated Normal |
Updated Normal |
Updated Normal |
Updated Normal |
Updated Normal |
|
Filed Currency |
USD |
USD |
USD |
USD |
USD |
|
Exchange Rate |
1 |
1 |
1 |
1 |
1 |
|
Auditor |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
|
Auditor Opinion |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
1,294.4 |
1,084.5 |
925.9 |
741.0 |
574.6 |
|
ST Investments |
0.5 |
0.5 |
0.7 |
0.7 |
0.7 |
|
Receivables |
945.1 |
1,018.5 |
824.6 |
802.6 |
948.3 |
|
Doubtful Account |
-10.4 |
-14.6 |
-14.2 |
-14.4 |
-14.8 |
|
Deferred Taxes |
10.4 |
8.7 |
8.3 |
8.0 |
8.3 |
|
Other |
46.9 |
42.8 |
42.5 |
35.5 |
17.6 |
|
Total Current Assets |
2,286.9 |
2,140.4 |
1,787.8 |
1,573.4 |
1,534.7 |
|
|
|
|
|
|
|
|
Land |
167.0 |
163.3 |
165.5 |
160.3 |
178.8 |
|
Build. & Improv. |
400.5 |
372.8 |
372.5 |
351.0 |
337.1 |
|
Furniture, fixtures, equipment and purch |
233.4 |
215.1 |
205.8 |
189.7 |
180.7 |
|
Construction in progress |
34.3 |
29.2 |
16.3 |
16.0 |
11.1 |
|
Vehicles |
- |
- |
- |
4.1 |
4.5 |
|
Depreciation |
-296.5 |
-281.7 |
-264.4 |
-228.0 |
-214.2 |
|
Goodwill |
7.9 |
7.9 |
- |
- |
- |
|
Goodwill |
- |
- |
8.7 |
8.7 |
8.7 |
|
Accumulated Amortization |
- |
- |
-0.8 |
-0.8 |
-0.8 |
|
Intangible |
22.8 |
22.6 |
22.1 |
22.2 |
21.6 |
|
Accumulated Amortization |
-20.1 |
-18.9 |
-17.1 |
-15.6 |
-13.8 |
|
Other assets |
30.6 |
28.5 |
27.3 |
19.9 |
20.7 |
|
Total Assets |
2,866.8 |
2,679.2 |
2,323.7 |
2,100.8 |
2,069.1 |
|
|
|
|
|
|
|
|
Accounts Payable |
606.6 |
652.2 |
546.7 |
491.8 |
613.1 |
|
Accrued Expenses |
169.4 |
177.9 |
145.5 |
150.5 |
129.7 |
|
Fed./Foreign Tax |
20.1 |
31.9 |
16.2 |
28.0 |
27.0 |
|
Total Current Liabilities |
796.1 |
862.0 |
708.4 |
670.3 |
769.8 |
|
|
|
|
|
|
|
|
Deferred Federal and state income taxes |
60.6 |
69.0 |
54.0 |
46.6 |
55.5 |
|
Minority Int. |
6.4 |
7.2 |
8.3 |
17.5 |
17.2 |
|
Total Liabilities |
863.2 |
938.3 |
770.7 |
734.4 |
842.5 |
|
|
|
|
|
|
|
|
Preferred stock par value $.01 per shar |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Common Stock |
2.1 |
2.1 |
2.1 |
2.1 |
2.1 |
|
Paid In Capital |
13.3 |
13.4 |
18.3 |
7.2 |
50.0 |
|
Retained Erngs. |
1,991.2 |
1,717.2 |
1,532.0 |
1,372.4 |
1,143.5 |
|
Other Comprehen. |
-3.0 |
8.1 |
0.6 |
-15.2 |
31.0 |
|
Total Equity |
2,003.6 |
1,740.9 |
1,553.0 |
1,366.4 |
1,226.6 |
|
|
|
|
|
|
|
|
Total Liabilities & Shareholders' Equity |
2,866.8 |
2,679.2 |
2,323.7 |
2,100.8 |
2,069.1 |
|
|
|
|
|
|
|
|
S/O-Common Stock |
212.0 |
212.0 |
212.0 |
212.0 |
213.0 |
|
Total Common Shares Outstanding |
212.0 |
212.0 |
212.0 |
212.0 |
213.0 |
|
T/S-Common Stock |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Accumulated Amortization of Intangibles |
20.1 |
18.9 |
17.1 |
15.6 |
13.8 |
|
Accumulated Amortization of Goodwill |
- |
- |
0.8 |
0.8 |
0.8 |
|
Full-Time Employees |
13,590 |
12,880 |
12,010 |
12,580 |
12,310 |
|
Number of Common Shareholders |
1,184 |
1,347 |
1,470 |
7,055 |
133,635 |
|
Operating Lease Maturing within 1 Year |
45.0 |
39.2 |
41.1 |
33.7 |
37.4 |
|
Operating Lease Maturing within 2 Years |
31.9 |
30.7 |
28.4 |
22.4 |
20.0 |
|
Operating Lease Maturing within 3 Years |
18.4 |
23.3 |
22.8 |
12.1 |
10.8 |
|
Operating Lease Maturing within 4 Years |
9.5 |
15.4 |
17.4 |
8.5 |
4.9 |
|
Operating Lease Maturing within 5 Years |
6.6 |
8.0 |
10.0 |
6.2 |
2.6 |
|
Operating Lease Maturing Thereafter |
7.2 |
11.4 |
15.2 |
2.1 |
2.7 |
|
Total Operating Leases |
118.6 |
128.2 |
134.9 |
84.9 |
78.4 |
Annual Cash Flows
Financials in: USD (mil)
|
|
31-Dec-2011 |
31-Dec-2010 |
31-Dec-2009 |
31-Dec-2008 |
31-Dec-2007 |
|
Period Length |
12 Months |
12 Months |
12 Months |
12 Months |
12 Months |
|
UpdateType/Date |
Updated Normal |
Updated Normal |
Updated Normal |
Reclassified
Normal |
Reclassified
Normal |
|
Filed Currency |
USD |
USD |
USD |
USD |
USD |
|
Exchange Rate
(Period Average) |
1 |
1 |
1 |
1 |
1 |
|
Auditor |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
|
Auditor Opinion |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
|
|
|
|
|
|
|
|
Net Income |
386.2 |
344.2 |
240.4 |
303.0 |
269.9 |
|
Depreciation |
36.8 |
36.9 |
40.0 |
40.0 |
39.3 |
|
Account Losses |
1.3 |
3.4 |
0.8 |
2.0 |
0.9 |
|
Deferred income tax expense (benefit) |
-4.1 |
10.6 |
-1.6 |
16.4 |
19.0 |
|
Excess tax benefits from stock plans |
-5.3 |
-23.9 |
-5.7 |
-11.0 |
-28.1 |
|
Stock Compensation Expense |
44.3 |
43.7 |
39.1 |
44.9 |
44.9 |
|
Gain on sale of assets |
0.4 |
-0.3 |
0.0 |
-0.7 |
-1.1 |
|
Other |
-6.5 |
-1.4 |
0.2 |
-1.0 |
-0.4 |
|
Accounts Receivable |
46.9 |
-188.8 |
-1.1 |
85.8 |
-85.0 |
|
Payable/Accrued |
-40.8 |
130.1 |
29.9 |
-66.5 |
46.9 |
|
Increase in taxes payable net |
-3.2 |
39.5 |
-12.7 |
-5.6 |
4.7 |
|
(Increase) decrease in other current ass |
- |
- |
0.0 |
- |
- |
|
Amortization of Intangibles |
1.2 |
1.4 |
1.5 |
1.6 |
1.5 |
|
Cash from Operating Activities |
457.1 |
395.5 |
330.8 |
409.0 |
312.6 |
|
|
|
|
|
|
|
|
ST Investment |
0.0 |
0.2 |
0.0 |
-0.1 |
0.0 |
|
Capital Expenditures |
-78.1 |
-42.4 |
-34.7 |
-59.7 |
-82.8 |
|
Equipment Sold |
0.2 |
0.4 |
0.3 |
0.4 |
0.5 |
|
Prepayment on long term land lease |
-0.9 |
0.0 |
-5.0 |
0.0 |
-2.8 |
|
Other |
-1.5 |
-0.3 |
-1.9 |
0.2 |
-2.9 |
|
Cash from Investing Activities |
-80.3 |
-42.2 |
-41.3 |
-59.2 |
-88.0 |
|
|
|
|
|
|
|
|
Common Stock Issued |
56.6 |
99.8 |
46.9 |
51.5 |
65.0 |
|
Com. Stock Repurch. |
-112.1 |
-246.3 |
-84.5 |
-154.2 |
-207.6 |
|
Excess tax benefits from stock plans |
5.3 |
23.9 |
5.7 |
11.0 |
28.1 |
|
Dividends Paid |
-106.0 |
-84.9 |
-80.6 |
-68.1 |
-59.7 |
|
Distribution to Minority Interest |
-1.0 |
-1.1 |
-1.1 |
-0.9 |
-0.3 |
|
Purchase of noncontrolling interest |
0.0 |
0.0 |
-3.9 |
0.0 |
0.0 |
|
Cash from Financing Activities |
-157.1 |
-208.6 |
-117.3 |
-160.7 |
-174.6 |
|
|
|
|
|
|
|
|
Foreign Exchange Effects |
-9.8 |
13.8 |
12.8 |
-22.6 |
13.2 |
|
Net Change in Cash |
209.9 |
158.5 |
184.9 |
166.4 |
63.2 |
|
|
|
|
|
|
|
|
Net Cash - Beginning Balance |
1,084.5 |
925.9 |
741.0 |
574.6 |
511.4 |
|
Net Cash - Ending Balance |
1,294.4 |
1,084.5 |
925.9 |
741.0 |
574.6 |
|
Cash Interest Paid |
0.3 |
0.1 |
0.5 |
0.2 |
0.1 |
|
Cash Taxes Paid |
266.6 |
171.6 |
158.7 |
172.1 |
146.4 |
Financial Health
Financials in: USD (mil)
Except for share items (millions) and per share items (actual units)
|
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Ratio Comparisons
|
|
Company |
Industry |
Sector |
S&P 500 |
|
Valuation Ratios |
||||
|
P/E Excluding Extraordinary (TTM) |
21.77 |
32.01 |
21.35 |
19.68 |
|
P/E High Excluding Extraordinary - Last 5 Yrs |
36.82 |
46.46 |
36.35 |
32.79 |
|
P/E Low Excluding Extraordinary - Last 5 Yrs |
22.84 |
18.12 |
13.11 |
10.71 |
|
Beta |
0.89 |
0.91 |
1.01 |
1.00 |
|
Price/Revenue (TTM) |
1.28 |
1.52 |
1.70 |
2.57 |
|
Price/Book (MRQ) |
3.77 |
7.38 |
5.08 |
3.67 |
|
Price to Tangible Book (MRQ) |
3.79 |
8.11 |
5.29 |
5.21 |
|
Price to Cash Flow Per Share (TTM) |
19.35 |
26.89 |
13.03 |
14.22 |
|
Price to Free Cash Flow Per Share (TTM) |
23.96 |
51.73 |
41.23 |
26.26 |
|
|
|
|
|
|
|
Dividends |
||||
|
Dividend Yield |
1.53% |
1.27% |
1.70% |
2.26% |
|
Dividend Per Share - 5 Yr Avg |
0.38 |
0.95 |
1.43 |
1.99 |
|
Dividend 5 Yr Growth |
17.84% |
26.53% |
17.35% |
0.08% |
|
Payout Ratio (TTM) |
31.20% |
4.39% |
17.01% |
25.98% |
|
|
|
|
|
|
|
Growth Rates (%) |
||||
|
Revenue (MRQ) vs Qtr 1 Yr Ago |
-4.83% |
32.66% |
16.25% |
15.58% |
|
Revenue (TTM) vs TTM 1 Yr Ago |
-4.25% |
-81.46% |
-25.00% |
17.69% |
|
Revenue 5 Yr Growth |
5.83% |
-83.21% |
-33.19% |
8.97% |
|
EPS (MRQ) vs Qtr 1 Yr Ago |
-10.61% |
37.05% |
43.07% |
19.49% |
|
EPS (TTM) vs TTM 1 Yr Ago |
-4.05% |
13.72% |
60.93% |
32.55% |
|
EPS 5 Yr Growth |
11.14% |
18.92% |
7.92% |
9.86% |
|
Capital Spending 5 Yr Growth |
-11.17% |
-85.84% |
-37.91% |
-2.04% |
|
|
|
|
|
|
|
Financial Strength |
||||
|
Quick Ratio (MRQ) |
- |
0.30 |
0.66 |
1.24 |
|
Current Ratio (MRQ) |
2.72 |
2.12 |
1.47 |
1.79 |
|
LT Debt/Equity (MRQ) |
0.00 |
0.22 |
1.19 |
0.64 |
|
Total Debt/Equity (MRQ) |
0.00 |
0.26 |
1.35 |
0.73 |
|
Interest Coverage (TTM) |
- |
-1.83 |
3.87 |
13.80 |
|
|
|
|
|
|
|
Profitability Ratios (%) |
||||
|
Gross Margin (TTM) |
31.04% |
25.65% |
37.32% |
45.21% |
|
Gross Margin - 5 Yr Avg |
29.65% |
26.67% |
34.23% |
44.91% |
|
EBITD Margin (TTM) |
10.19% |
10.46% |
20.84% |
24.43% |
|
EBITD Margin - 5 Yr Avg |
9.78% |
9.90% |
18.15% |
22.84% |
|
Operating Margin (TTM) |
9.57% |
7.98% |
14.83% |
20.63% |
|
Operating Margin - 5 Yr Avg |
9.04% |
7.53% |
13.40% |
18.28% |
|
Pretax Margin (TTM) |
9.97% |
7.49% |
12.51% |
17.95% |
|
Pretax Margin - 5 Yr Avg |
9.43% |
7.15% |
11.68% |
17.10% |
|
Net Profit Margin (TTM) |
5.99% |
4.62% |
7.89% |
13.65% |
|
Net Profit Margin - 5 Yr Avg |
5.70% |
4.49% |
7.54% |
12.10% |
|
Effective Tax Rate (TTM) |
39.91% |
37.53% |
37.10% |
28.45% |
|
Effective Tax rate - 5 Yr Avg |
39.56% |
38.58% |
34.80% |
29.92% |
|
|
|
|
|
|
|
Management Effectiveness (%) |
||||
|
Return on Assets (TTM) |
12.29% |
12.88% |
6.84% |
8.54% |
|
Return on Assets - 5 Yr Avg |
13.40% |
-69.45% |
-27.41% |
8.40% |
|
Return on Investment (TTM) |
17.81% |
12.85% |
4.94% |
7.90% |
|
Return on Investment - 5 Yr Avg |
20.07% |
-27.17% |
-9.49% |
8.27% |
|
Return on Equity (TTM) |
18.39% |
21.61% |
20.93% |
19.72% |
|
Return on Equity - 5 Yr Avg |
20.75% |
22.84% |
16.59% |
20.06% |
|
|
|
|
|
|
|
Efficiency |
||||
|
Revenue/Employee (TTM) |
443,311.60 |
775,624.12 |
332,431.75 |
927,613.77 |
|
Net Income/Employee (TTM) |
26,545.92 |
36,691.50 |
29,061.58 |
116,121.92 |
|
Receivables Turnover (TTM) |
5.99 |
7.78 |
16.18 |
13.25 |
|
Inventory Turnover (TTM) |
- |
73.09 |
35.64 |
14.53 |
|
Asset Turnover (TTM) |
2.05 |
0.46 |
0.75 |
0.93 |
Annual Ratios
Financials in: USD (mil)
Except for share items (millions) and per share items (actual units)
|
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Stock Report
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Traded: NASDAQ: EXPD |
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Standard
& Poor’s
|
United
States of America Long-Term Rating Lowered To 'AA+' Due To Political Risks,
Rising Debt Burden; Outlook Negative |
|
Publication
date: 05-Aug-2011 20:13:14 EST |
·
We have lowered our long-term
sovereign credit rating on the United States of America to 'AA+' from 'AAA' and
affirmed the 'A-1+' short-term rating.
·
We have also removed both the short- and long-term ratings
from CreditWatch negative.
·
The downgrade reflects our opinion
that the fiscal consolidation plan that Congress and the Administration
recently agreed to falls short of what, in our view, would be necessary to
stabilize the government's medium-term debt dynamics.
·
More broadly, the downgrade
reflects our view that the effectiveness, stability, and predictability of
American policymaking and political institutions have weakened at a time of
ongoing fiscal and economic challenges to a degree more than we envisioned when
we assigned a negative outlook to the rating on April 18, 2011.
·
Since then, we have changed our
view of the difficulties in bridging the gulf between the political parties
over fiscal policy, which makes us pessimistic about the capacity of Congress
and the Administration to be able to leverage their agreement this week into a
broader fiscal consolidation plan that stabilizes the government's debt
dynamics any time soon.
·
The outlook on the long-term rating
is negative. We could lower the long-term rating to 'AA' within the next two
years if we see that less reduction in spending than agreed to, higher interest
rates, or new fiscal pressures during the period result in a higher general
government debt trajectory than we currently assume in our base case.
TORONTO (Standard &
Poor's) Aug. 5, 2011--Standard & Poor's Ratings Services said today that it
lowered its long-term sovereign credit rating on the United States of America
to 'AA+' from 'AAA'. Standard & Poor's also said that the outlook on the
long-term rating is negative. At the same time, Standard & Poor's affirmed
its 'A-1+' short-term rating on the U.S. In addition, Standard & Poor's
removed both ratings from CreditWatch, where they were placed on July 14, 2011,
with negative implications.
The transfer
and convertibility (T&C) assessment of the U.S.--our assessment of the
likelihood of official interference in the ability of U.S.-based public- and
private-sector issuers to secure foreign exchange for
debt service--remains
'AAA'.
We lowered our long-term
rating on the U.S. because we believe that the prolonged controversy over
raising the statutory debt ceiling and the related fiscal policy debate
indicate that further near-term progress containing the growth in public
spending, especially on entitlements, or on reaching an agreement on raising
revenues is less likely than we previously assumed and will remain a
contentious and fitful process. We also believe that the fiscal consolidation
plan that Congress and the Administration agreed to this week falls short of
the amount that we believe is necessary to stabilize the general government
debt burden by the middle of the decade.
Our lowering of the
rating was prompted by our view on the rising public debt burden and our
perception of greater policymaking uncertainty, consistent with our criteria
(see "Sovereign Government Rating Methodology and
Assumptions ," June 30, 2011, especially
Paragraphs 36-41). Nevertheless, we view the U.S. federal government's other
economic, external, and monetary credit attributes, which form the basis for
the sovereign rating, as broadly unchanged.
We have taken the ratings
off CreditWatch because the Aug. 2 passage of the Budget Control Act Amendment
of 2011 has removed any perceived immediate threat of payment default posed by
delays to raising the government's debt ceiling. In addition, we believe that
the act provides sufficient clarity to allow us to evaluate the likely course
of U.S. fiscal policy for the next few years.
The
political brinksmanship of recent months highlights what we see as America's
governance and policymaking becoming less stable, less effective, and less
predictable than what we previously believed. The statutory debt ceiling and
the threat of default have become political bargaining chips in the debate over
fiscal policy. Despite this year's wide-ranging debate, in our view, the
differences between political parties have proven to be extraordinarily
difficult to bridge, and, as we see it, the resulting agreement fell well short
of the comprehensive fiscal consolidation program that some proponents had
envisaged until quite recently. Republicans and Democrats have only been able
to agree to relatively modest savings on discretionary spending while
delegating to the Select Committee decisions on more comprehensive measures. It
appears that for now, new revenues have dropped down on the menu of policy
options. In addition, the plan envisions only minor policy changes on Medicare
and little change in other entitlements,
the containment of which
we and most other independent observers regard as key to long-term fiscal
sustainability.
Our opinion is that
elected officials remain wary of tackling the structural issues required to
effectively address the rising U.S. public debt burden in a manner consistent
with a 'AAA' rating and with 'AAA' rated sovereign peers (see Sovereign Government Rating Methodology and
Assumptions," June 30, 2011,
especially Paragraphs 36-41). In our view, the difficulty in framing a
consensus on fiscal policy weakens the government's ability to manage public
finances and diverts attention from the debate over how to achieve more
balanced and dynamic economic growth in an era of fiscal stringency and
private-sector deleveraging (ibid). A new political consensus might (or might
not) emerge after the 2012 elections, but we believe that by then, the
government debt burden will likely be higher, the needed medium-term fiscal
adjustment potentially greater, and the inflection point on the U.S.
population's demographics and other age-related spending drivers closer at hand
(see "Global Aging 2011: In The U.S., Going Gray Will Likely
Cost Even More Green, Now,"
June 21, 2011).
Standard & Poor's
takes no position on the mix of spending and revenue measures that Congress and
the Administration might conclude is appropriate for putting the U.S.'s
finances on a sustainable footing.
The act calls for as much
as $2.4 trillion of reductions in expenditure growth over the 10 years through 2021.
These cuts will be implemented in two steps: the $917 billion agreed to
initially, followed by an additional $1.5 trillion that the newly formed
Congressional Joint Select Committee on Deficit Reduction is supposed to
recommend by November 2011. The act contains no measures to raise taxes or
otherwise enhance revenues, though the committee could recommend them.
The act further provides
that if Congress does not enact the committee's recommendations, cuts of $1.2 trillion
will be implemented over the same time period. The reductions would mainly
affect outlays for civilian discretionary spending, defense, and Medicare. We
understand that this fall-back mechanism is designed to encourage Congress to
embrace a more balanced mix of expenditure savings, as the committee might
recommend.
We note that in a letter
to Congress on Aug. 1, 2011, the Congressional Budget Office (CBO) estimated
total budgetary savings under the act to be at least $2.1 trillion over the
next 10 years relative to its baseline assumptions. In updating our own fiscal
projections, with certain modifications outlined below, we have relied on the
CBO's latest "Alternate Fiscal Scenario" of June 2011, updated to
include the CBO assumptions contained in its Aug. 1 letter to Congress. In
general, the CBO's "Alternate Fiscal Scenario" assumes a continuation
of recent Congressional action overriding existing law.
We view the act's
measures as a step toward fiscal consolidation. However, this is within the framework
of a legislative mechanism that leaves open the details of what is finally
agreed to until the end of 2011, and Congress and the Administration could
modify any agreement in the future. Even assuming that at least $2.1 trillion
of the spending reductions the act envisages are implemented, we maintain our
view that the U.S. net general government debt burden (all levels of government
combined, excluding liquid financial assets) will likely continue to grow.
Under our revised base case fiscal scenario--which we consider to be consistent
with a 'AA+' long-term rating and a negative outlook--we now project that net
general government debt would rise from an estimated 74% of GDP by the end of
2011 to 79% in 2015 and 85% by 2021. Even the projected 2015 ratio of sovereign
indebtedness is high in relation to those of peer credits and, as noted, would
continue to rise under the act's revised policy settings.
Compared with previous
projections, our revised base case scenario now assumes that the 2001 and 2003
tax cuts, due to expire by the end of 2012, remain in place. We have changed
our assumption on this because the majority of Republicans in Congress continue
to resist any measure that would raise revenues, a position we believe Congress
reinforced by passing the act. Key macroeconomic assumptions in the base case
scenario include trend real GDP growth of 3% and consumer price inflation near
2% annually over the decade.
Our revised upside
scenario--which, other things being equal, we view as consistent with the
outlook on the 'AA+' long-term rating being revised to stable--retains these
same macroeconomic assumptions. In addition, it incorporates $950 billion of
new revenues on the assumption that the 2001 and 2003 tax cuts for high earners
lapse from 2013 onwards, as the Administration is advocating. In this scenario,
we project that the net general government debt would rise from an estimated
74% of GDP by the end of 2011 to 77% in 2015 and to 78% by 2021.
Our revised downside
scenario--which, other things being equal, we view as being consistent with a
possible further downgrade to a 'AA' long-term rating--features less-favorable
macroeconomic assumptions, as outlined below and also assumes that the second
round of spending cuts (at least $1.2 trillion) that the act calls for does not
occur. This scenario also assumes somewhat higher nominal interest rates for
U.S. Treasuries. We still believe that the role of the U.S. dollar as the key
reserve currency confers a government funding advantage, one that could change
only slowly over time, and that Fed policy might lean toward continued loose
monetary policy at a time of fiscal tightening. Nonetheless, it is possible
that interest rates could rise if investors re-price relative risks. As a
result, our alternate scenario factors in a 50 basis point (bp)-75 bp rise in
10-year bond yields relative to the base and upside cases from 2013 onwards. In
this scenario, we project the net public debt burden would rise from 74% of GDP
in 2011 to 90% in 2015 and to 101% by 2021.
Our revised scenarios
also take into account the significant negative revisions to historical GDP
data that the Bureau of Economic Analysis announced on July 29. From our
perspective, the effect of these revisions underscores two related points when
evaluating the likely debt trajectory of the U.S. government. First, the
revisions show that the recent recession was deeper than previously assumed, so
the GDP this year is lower than previously thought in both nominal and real
terms. Consequently, the debt burden is slightly higher. Second, the revised
data highlight the sub-par path of the current economic recovery when compared
with rebounds following previous post-war recessions. We believe the sluggish
pace of the current economic recovery could be consistent with the experiences
of countries that have had financial crises in which the slow process of debt
deleveraging in the private sector leads to a persistent drag on demand. As a
result, our downside case scenario assumes relatively modest real trend GDP
growth of 2.5% and inflation of near 1.5% annually going forward.
When comparing the U.S.
to sovereigns with 'AAA' long-term ratings that we view as relevant
peers--Canada, France, Germany, and the U.K.--we also observe, based on our
base case scenarios for each, that the trajectory of the U.S.'s net public debt
is diverging from the others. Including the U.S., we estimate that these five
sovereigns will have net general government debt to GDP ratios this year
ranging from 34% (Canada) to 80% (the U.K.), with the U.S. debt burden at 74%.
By 2015, we project that their net public debt to GDP ratios will range between
30% (lowest, Canada) and 83% (highest, France), with the U.S. debt burden at
79%. However, in contrast with the U.S., we project that the net public debt
burdens of these other sovereigns will begin to decline, either before or by
2015.
Standard & Poor's
transfer T&C assessment of the U.S. remains 'AAA'. Our T&C assessment
reflects our view of the likelihood of the sovereign restricting other public
and private issuers' access to foreign exchange needed to meet debt service.
Although in our view the credit standing of the U.S. government has
deteriorated modestly, we see little indication that official interference of
this kind is entering onto the policy agenda of either Congress or the
Administration. Consequently, we continue to view this risk as being highly
remote.
The outlook on the
long-term rating is negative. As our downside alternate fiscal scenario
illustrates, a higher public debt trajectory than we currently assume could
lead us to lower the long-term rating again. On the other hand, as our upside
scenario highlights, if the recommendations of the Congressional Joint Select
Committee on Deficit Reduction--independently or coupled with other
initiatives, such as the lapsing of the 2001 and 2003 tax cuts for high
earners--lead to fiscal consolidation measures beyond the minimum mandated, and
we believe they are likely to slow the deterioration of the government's debt
dynamics, the long-term rating could stabilize at 'AA+'.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.44 |
|
UK Pound |
1 |
Rs.89.31 |
|
Euro |
1 |
Rs.71.62 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.