Expeditors International of Washington, Inc. (NYSE:EXPD) today announced second quarter 2024 financial results including the following comparisons to the same quarter of 2023:

Diluted Net Earnings Attributable to Shareholders per share (EPS¹) decreased 5% to $1.24
Net Earnings Attributable to Shareholders decreased 11% to $175 million
Operating Income decreased 10% to $224 million
Revenues increased 9% to $2.4 billion
Airfreight tonnage volume increased 15% and ocean container volume decreased 3%

"We continued to adapt well to another erratic quarter for our industry, which has been impacted by the rapid changes and imbalances in buy versus sell rates, particularly on exports out of Asia," said Jeffrey S. Musser, President and Chief Executive Officer. "Air market capacity has been constrained by e-commerce demand, and ocean routing has been significantly disrupted by geopolitical events in the Red Sea, causing less frequent services due to blank sailings, longer transit times as well as port congestion. We have continued to adjust to the disruptions and uneven demand, keeping costs in check while we work to bring efficiency back in line with historical expectations.

"Air tonnage improved 15% year-over-year and 10% sequentially against Q1 2024, but buy rates outpaced increased sell rates, as international direct e-commerce demand from North Asia outweighed increased carrier capacity to accommodate this growth in demand. The air markets have further been impacted by manufacturing relocations. With respect to the ocean market, longer sailings due to insecurity on the Red Sea have largely lessened the benefits of any increased ocean capacity brought on this quarter. Even though ocean volumes increased for a second sequential quarter, buy rate increases outpaced higher sell rates.

"As we noted in the first quarter, our ability to see much beyond our day-to-day levels of activity remains challenging. While there are some signs of improving market conditions, there is much uncertainty with regard to demand, capacity, and pricing, not to mention unpredictable events with the potential to impact global shipping for days, weeks, or even longer. I am grateful for the customer-focused dedication of our workforce, particularly during these unpredictable times. We remain focused on keeping costs in check and are ready to pivot for whatever new challenges arise."

Bradley S. Powell, Senior Vice President and Chief Financial Officer, added, "Expenses are still high compared to our 30% efficiency target (operating income as a percentage of revenue less directly related cost of transportation and other expenses), with compensation being our largest and most variable operating expense. We continue to focus on alignment of shipment activity with headcount. Once again, our primary area of increased headcount during the quarter compared to the same quarter last year was in information systems, as we add critical enhancements to further bolster our technology solutions, network and security. As we drive to achieve our efficiency target, we will continue to make important investments in people, processes and technology, as well as to invest in our strategic efforts to explore new areas for profitable growth."

Mr. Powell also noted that the Company returned $205 million to shareholders in common stock repurchases and dividends during the second quarter of 2024.

Expeditors is a global logistics company headquartered in Seattle, Washington. The Company employs trained professionals in 176 district offices and numerous branch locations located on six continents linked into a seamless worldwide network through an integrated information management system. Services include the consolidation or forwarding of air and ocean freight, customs brokerage, vendor consolidation, cargo insurance, time-definite transportation, order management, warehousing and distribution and customized logistics solutions.

_______________________

¹Diluted earnings attributable to shareholders per share.

NOTE: See Disclaimer on Forward-Looking Statements in this release.

Disclaimer on Forward-Looking Statements:

Certain statements contained in this news release are "forward-looking statements," based on management's views with respect to future events and underlying assumptions that involve risks and uncertainties. These forward-looking statements include statements regarding inflation; fragile economies; continued growth in air and ocean carrier capacity and the impact on rates; unpredictability in the ocean and air markets, including uncertainty due to conflicts in the Middle East and Red Sea; new capacity in the marketplace; longer ocean transit times; strong e-commerce demand in the air market; and cautious shipper demand and variable rate stability. Future financial performance could differ materially because of factors such as: our ability to keep headcount and other costs in check while continuing to drive efficiency back towards our historical expectations; the alignment of our variable compensation structure with performance; our ability to enhance and bolster our network security; that management is able to grow the business and explore new areas for profitable growth; our ability to leverage the strength of our carrier relationships; the strength of our non-asset-based operating model; and our ability to remain a strong, healthy, unified and resilient organization. The normalizing of the supply chain at the end of the pandemic, along with geo-political risks and the current uncertainty in the global economy, could have the effect of heightening many of the other risks described in Item 1A of our Annual Report on Form 10-K, including, without limitation, those related to the success of our strategy and desire to maintain historical unitary profitability, our ability to attract and retain customers, our ability to manage costs, interruptions to our information technology systems, the ability of third-party providers to perform and potential litigation and contingencies, including risks associated with tax audits, as updated by our reports on Form 10-Q, filed with the Securities and Exchange Commission. These and other factors are discussed in the Company's regulatory filings with the Securities and Exchange Commission, including those in "Item 1A. Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and the Company's most recent Form 10-Q. The forward-looking statements contained in this news release speak only as of this date and the Company does not assume any obligation to update them except as required by law.

Expeditors International of Washington, Inc. Second Quarter 2024 Earnings Release, August 6, 2024 Financial Summary for the three months ended June 30, 2024 and 2023 (Unaudited) (in 000's of US dollars except share data)
	Three months ended June 30,						Six months ended June 30,
	2024		2023		% Change		2024		2023		% Change
Revenues	$	2,439,001	$	2,239,752	9	%	$	4,645,679	$	4,832,341	(4	)%
Directly related cost of transportation and other expenses ¹	$	1,639,408	$	1,419,183	16	%	$	3,072,688	$	3,138,285	(2	)%
Salaries and other operating expenses ²	$	575,674	$	572,072	1	%	$	1,134,296	$	1,169,590	(3	)%
Operating income	$	223,919	$	248,497	(10	)%	$	438,695	$	524,466	(16	)%
Net earnings attributable to shareholders	$	175,469	$	196,800	(11	)%	$	344,621	$	422,811	(18	)%
Diluted earnings attributable to shareholders per share	$	1.24	$	1.30	(5	)%	$	2.41	$	2.75	(12	)%
Basic earnings attributable to shareholders per share	$	1.24	$	1.31	(5	)%	$	2.43	$	2.78	(13	)%
Diluted weighted average shares outstanding		141,716		151,563				142,928		153,516
Basic weighted average shares outstanding		141,013		150,435				142,104		152,291

¹Directly related cost of transportation and other expenses totals Operating Expenses from Airfreight services, Ocean freight and ocean services and Customs brokerage and other services as shown in the Condensed Consolidated Statements of Earnings.

²Salaries and other operating expenses totals Salaries and related, Rent and occupancy, Depreciation and amortization, Selling and promotion and Other as shown in the Condensed Consolidated Statements of Earnings.

During the three and six months ended June 30, 2024, we repurchased 0.9 million and 3.9 million shares of common stock at an average price of $116.88 and $119.43 per share. During the three and six months ended June 30, 2023 we repurchased 6.0 million and 8.0 million shares of common stock at an average price of $114.61 and $113.23 per share.

	Employee Full-time Equivalents as of
	June 30, 2024		June 30, 2023
North America		6,847		7,154
Europe		3,812		3,946
North Asia		2,238		2,340
South Asia		1,717		1,731
Middle East, Africa and India		1,391		1,459
Latin America		754		765
Information Systems		1,291		1,247
Corporate		413		411
Total		18,463		19,053

	Second quarter year-over-year percentage increase (decrease) in:
2024	Airfreight kilos		Ocean freight FEU
April	13	%	(3	)%
May	15	%	(3	)%
June	19	%	(2	)%
Quarter	15	%	(3	)%

Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on August 9, 2024 will be considered in management's 8-K "Responses to Selected Questions."

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (In thousands, except per share data) (Unaudited)

	June 30, 2024			December 31, 2023
Assets:
Current Assets:
Cash and cash equivalents	$	1,271,853		$	1,512,883
Accounts receivable, less allowance for credit loss of $6,966 at June 30, 2024 and $6,550 at December 31, 2023		1,843,894			1,532,599
Deferred contract costs		395,241			218,807
Other		185,766			170,907
Total current assets		3,696,754			3,435,196
Property and equipment, less accumulated depreciation and amortization $608,860 at June 30, 2024 and $597,473 at December 31, 2023		461,494			479,225
Operating lease right-of-use assets		537,114			516,280
Goodwill		7,927			7,927
Deferred federal and state income taxes, net		69,646			63,690
Other assets, net		15,406			21,491
Total assets	$	4,788,341		$	4,523,809
Liabilities:
Current Liabilities:
Accounts payable	$	1,073,476		$	860,856
Accrued liabilities, primarily salaries and related costs		486,989			447,336
Contract liabilities		474,507			280,909
Current portion of operating lease liabilities		104,042			99,749
Federal, state and foreign income taxes		21,904			15,562
Total current liabilities		2,160,918			1,704,412
Noncurrent portion of operating lease liabilities		448,996			427,984
Shareholders' Equity:
Preferred stock, none issued		—			—
Common stock, par value $0.01 per share. Issued and outstanding: 140,633 shares at June 30, 2024 and 143,866 shares at December 31, 2023		1,406			1,439
Additional paid-in capital		7,732			—
Retained earnings		2,385,740			2,580,968
Accumulated other comprehensive loss		(218,457	)		(192,057	)
Total shareholders' equity		2,176,421			2,390,350
Noncontrolling interest		2,006			1,063
Total equity		2,178,427			2,391,413
Total liabilities and equity	$	4,788,341		$	4,523,809

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings (In thousands, except per share data) (Unaudited)
	Three months ended June 30,						Six months ended June 30,
	2024			2023			2024		2023
Revenues:
Airfreight services	$	860,323		$	751,171		$	1,619,697	$	1,656,074
Ocean freight and ocean services		651,675			593,801			1,222,461		1,291,108
Customs brokerage and other services		927,003			894,780			1,803,521		1,885,159
Total revenues		2,439,001			2,239,752			4,645,679		4,832,341
Operating Expenses:
Airfreight services		645,168			525,027			1,182,759		1,191,049
Ocean freight and ocean services		478,121			405,807			892,104		889,489
Customs brokerage and other services		516,119			488,349			997,825		1,057,747
Salaries and related		426,431			428,558			839,593		878,406
Rent and occupancy		59,597			58,205			120,849		115,837
Depreciation and amortization		14,979			15,506			30,140		30,767
Selling and promotion		7,998			6,314			14,777		12,698
Other		66,669			63,489			128,937		131,882
Total operating expenses		2,215,082			1,991,255			4,206,984		4,307,875
Operating income		223,919			248,497			438,695		524,466
Other Income (Expense):
Interest income		11,904			17,792			26,782		36,567
Other, net		98			(106	)		3,626		5,728
Other income, net		12,002			17,686			30,408		42,295
Earnings before income taxes		235,921			266,183			469,103		566,761
Income tax expense		60,770			70,390			123,552		144,970
Net earnings		175,151			195,793			345,551		421,791
Less net earnings (losses) attributable to the noncontrolling interest		(318	)		(1,007	)		930		(1,020	)
Net earnings attributable to shareholders	$	175,469		$	196,800		$	344,621	$	422,811
Diluted earnings attributable to shareholders per share	$	1.24		$	1.30		$	2.41	$	2.75
Basic earnings attributable to shareholders per share	$	1.24		$	1.31		$	2.43	$	2.78
Weighted average diluted shares outstanding		141,716			151,563			142,928		153,516
Weighted average basic shares outstanding		141,013			150,435			142,104		152,291

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)
	Three months ended June 30,						Six months ended June 30,
	2024			2023			2024			2023
Operating Activities:
Net earnings	$	175,151		$	195,793		$	345,551		$	421,791
Adjustments to reconcile net earnings to net cash from operating activities:
Provisions for losses (recoveries) on accounts receivable		1,644			(167	)		2,038			905
Deferred income tax benefit		(6,917	)		(3,560	)		(4,623	)		(1,524	)
Stock compensation expense		25,704			18,595			38,076			31,083
Depreciation and amortization		14,979			15,506			30,140			30,767
Other, net		1,885			2,564			3,870			3,723
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable		(286,085	)		174,321			(346,627	)		682,927
Increase (decrease) in accounts payable and accrued liabilities		211,692			(149,986	)		295,283			(352,909	)
(Decrease) increase in deferred contract costs		(122,258	)		18,166			(186,320	)		85,787
Increase (decrease) in contract liabilities		135,067			(23,803	)		204,375			(108,250	)
Decrease in income taxes payable, net		(29,854	)		(93,817	)		(7,168	)		(93,726	)
Increase in other, net		5,761			4,834			9,078			4,284
Net cash from operating activities		126,769			158,446			383,673			704,858
Investing Activities:
Purchase of property and equipment		(7,943	)		(10,481	)		(18,124	)		(20,607	)
Other, net		66			(794	)		163			(219	)
Net cash from investing activities		(7,877	)		(11,275	)		(17,961	)		(20,826	)
Financing Activities:
Proceeds (payments) on borrowings on lines of credit, net		1,259			1,311			(15,983	)		(13,596	)
Proceeds from issuance of common stock		6,449			9,176			14,478			18,464
Repurchases of common stock		(102,300	)		(687,689	)		(462,824	)		(901,191	)
Dividends paid		(102,638	)		(102,263	)		(102,638	)		(102,263	)
Payments for taxes related to net share settlement of equity awards		(10,163	)		(12,056	)		(15,348	)		(19,501	)
Net cash from financing activities		(207,393	)		(791,521	)		(582,315	)		(1,018,087	)
Effect of exchange rate changes on cash and cash equivalents		(10,102	)		(7,857	)		(24,427	)		(1,489	)
Change in cash and cash equivalents		(98,603	)		(652,207	)		(241,030	)		(335,544	)
Cash and cash equivalents at beginning of period		1,370,456			2,350,794			1,512,883			2,034,131
Cash and cash equivalents at end of period	$	1,271,853		$	1,698,587		$	1,271,853		$	1,698,587
Taxes Paid:
Income taxes	$	96,739		$	173,670		$	133,603		$	244,456

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Business Segment Information (In thousands) (Unaudited)
	UNITED STATES		OTHER NORTH AMERICA		LATIN AMERICA		NORTH ASIA		SOUTH ASIA		EUROPE		MIDDLE EAST, AFRICA AND INDIA		ELIMI- NATIONS			CONSOLI- DATED
For the three months ended June 30, 2024:
Revenues	$	779,170		110,723		45,314		637,351		287,943		409,455		170,349		(1,304	)		2,439,001
Directly related cost of transportation and other expenses¹	$	423,102		65,374		24,640		512,146		223,238		262,451		128,949		(492	)		1,639,408
Salaries and other operating expenses²	$	263,675		34,339		14,551		70,762		43,084		119,713		30,352		(802	)		575,674
Operating income	$	92,393		11,010		6,123		54,443		21,621		27,291		11,048		(10	)		223,919
Identifiable assets at period end	$	2,566,053		173,764		93,967		626,892		336,598		738,068		284,672		(31,673	)		4,788,341
Capital expenditures	$	2,948		575		129		355		1,955		1,094		887		—			7,943
Equity	$	1,546,936		32,700		41,135		163,913		129,886		151,165		153,155		(40,463	)		2,178,427
For the three months ended June 30, 2023:
Revenues	$	805,948		110,255		49,972		510,027		199,868		440,916		123,972		(1,206	)		2,239,752
Directly related cost of transportation and other expenses¹	$	426,121		69,108		29,428		387,973		134,477		288,808		83,890		(623	)		1,419,182
Salaries and other operating expenses²	$	256,277		34,793		16,265		68,290		44,048		125,196		27,820		(616	)		572,073
Operating income	$	123,550		6,354		4,279		53,764		21,343		26,912		12,262		33			248,497
Identifiable assets at period end	$	2,553,553		192,362		115,458		495,229		213,026		748,449		258,849		(12,886	)		4,564,040
Capital expenditures	$	6,623		161		46		352		168		2,336		795		—			10,481
Equity	$	1,873,220		45,252		59,289		220,638		93,476		146,174		158,133		(38,078	)		2,558,104

	UNITED STATES		OTHER NORTH AMERICA		LATIN AMERICA		NORTH ASIA		SOUTH ASIA		EUROPE		MIDDLE EAST, AFRICA AND INDIA		ELIMI- NATIONS			CONSOLI- DATED
For the six months ended June 30, 2024:
Revenues	$	1,530,713		217,573		89,806		1,182,292		515,662		807,772		304,455		(2,594	)		4,645,679
Directly related cost of transportation and other expenses¹	$	827,051		132,084		49,104		938,620		387,262		516,970		222,741		(1,144	)		3,072,688
Salaries and other operating expenses²	$	519,383		67,423		31,315		138,022		83,996		236,801		58,816		(1,460	)		1,134,296
Operating income	$	184,279		18,066		9,387		105,650		44,404		54,001		22,898		10			438,695
Identifiable assets at period end	$	2,566,053		173,764		93,967		626,892		336,598		738,068		284,672		(31,673	)		4,788,341
Capital expenditures	$	8,476		1,974		282		637		2,099		3,312		1,344		—			18,124
Equity	$	1,546,936		32,700		41,135		163,913		129,886		151,165		153,155		(40,463	)		2,178,427
For the six months ended June 30, 2023:
Revenues	$	1,751,442		220,105		104,667		1,092,448		423,995		975,380		266,675		(2,371	)		4,832,341
Directly related cost of transportation and other expenses¹	$	966,078		138,313		61,730		840,315		292,100		661,068		179,839		(1,159	)		3,138,284
Salaries and other operating expenses²	$	523,960		70,617		35,767		139,430		90,846		252,568		57,652		(1,249	)		1,169,591
Operating income	$	261,404		11,175		7,170		112,703		41,049		61,744		29,184		37			524,466
Identifiable assets at period end	$	2,553,553		192,362		115,458		495,229		213,026		748,449		258,849		(12,886	)		4,564,040
Capital expenditures	$	12,067		630		276		942		335		5,319		1,038		—			20,607
Equity	$	1,873,220		45,252		59,289		220,638		93,476		146,174		158,133		(38,078	)		2,558,104

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Expeditors Reports Second Quarter 2024 EPS of $1.24