C.H. Robinson announced plans on Wednesday to furlough or reduce hours for seven percent of its workforce. In spite of previous measures to ease the effects of Covid-19, the company is still struggling.
The company’s first quarter earnings missed Zacks Consensus Estimate by 14 cents per share. The company’s profits fell by a whopping 51% since the first quarter of last year. Increased administrative costs caused CH Robinson’s operating ratio to deteriorate to 80.7%, from 66.9% one year ago.
Furloughs will last 90 days. Benefits will still be covered during this time.
CEO Robert Beisterfeld told investors that, “The direction of the freight market and of the broader global economy will be very difficult to predict over the next few quarters…[w]e’ll continue to make measured and thoughtful decisions that are in the best interest of our employees, customers, contract carriers and the long-term health of the company.”
“While the situation remains fluid, one thing is certain: we are committed to our vital role in the global supply chain by delivering critical and essential goods and services – especially in this time of crisis. We will continue to make measured and thoughtful decisions that are in the best interest of our employees, customers, contract carriers, our company and the communities where we live and work while remaining true to the values and pillars that guide all of our business decisions,” Biesterfeld stated in yesterday’s release detailing Q1 financials.
CH Robinson has already reduced executive salaries by 20% and the CEO’s salary by 50%, put a freeze on hiring, and temporarily suspended its 401(k) matching.