Expeditors International of Washington(EXPD) - 2024 Q2 - Quarterly Results

Financial Performance - Q2 2024 diluted EPS decreased 5% to $1.24, while net earnings attributable to shareholders fell 11% to $175 million[2]. - Revenues increased 9% year-over-year to $2.4 billion, despite operating income decreasing 10% to $224 million[2][7]. - Total revenues for Q2 2024 reached $2,439,001, an increase of 8.9% compared to $2,239,752 in Q2 2023[11]. - Net earnings attributable to shareholders for Q2 2024 were $175,469, a decrease of 10.4% from $196,800 in Q2 2023[11]. - Operating income for the first half of 2024 was $438,695, down 16.3% from $524,466 in the first half of 2023[11]. - Operating income for Q2 2024 was $575,674, compared to $248,497 in Q2 2023, indicating a significant increase of approximately 131.5%[13]. - Revenues for the first half of 2024 were $4,645,679, down from $4,832,341 in the first half of 2023, representing a decline of about 3.9%[13]. Expenses and Liabilities - The company faced high expenses, with compensation being the largest variable operating expense, impacting efficiency targets[4]. - Total operating expenses increased to $2,215,082 in Q2 2024, up from $1,991,255 in Q2 2023, representing an increase of 11.3%[11]. - Directly related costs of transportation and other expenses for Q2 2024 totaled $1,639,408, an increase from $1,419,182 in Q2 2023, which is an increase of about 15.5%[13]. - Current assets increased to $3.7 billion as of June 30, 2024, compared to $3.4 billion at the end of 2023[10]. - Total liabilities rose to $2.2 billion as of June 30, 2024, up from $1.7 billion at the end of 2023[10]. - The company reported a decrease in total equity to $2.2 billion as of June 30, 2024, down from $2.4 billion at the end of 2023[10]. Shareholder Returns - The company returned $205 million to shareholders through stock repurchases and dividends in Q2 2024[5]. - The company repurchased common stock amounting to $102,300 during Q2 2024, compared to $687,689 in Q2 2023[12]. Market Conditions - The air market is constrained by e-commerce demand, while ocean routing is disrupted by geopolitical events, affecting service frequency and transit times[2][3]. - Airfreight tonnage volume rose 15% year-over-year, while ocean container volume decreased by 3%[2][9]. - The company reported a decrease in revenues from North Asia, which totaled $637,351 in Q2 2024, down from $510,027 in Q2 2023, a decline of approximately 24.9%[13]. - The company experienced a decline in revenues from South Asia, which were $287,943 in Q2 2024, down from $199,868 in Q2 2023, a decrease of approximately 44.0%[13]. Cash Flow and Investments - Cash and cash equivalents at the end of Q2 2024 were $1,271,853, a decrease from $1,698,587 at the end of Q2 2023[12]. - Net cash from operating activities for Q2 2024 was $126,769, compared to $158,446 in Q2 2023, a decline of 20.0%[12]. - Capital expenditures for the first half of 2024 amounted to $18,124, compared to $20,607 in the same period of 2023, showing a decrease of approximately 12.1%[13]. - The company is focused on investments in technology and processes to drive future growth and efficiency[5].