(Reuters) - Logistics firm Expeditors International (NYSE:EXPD) of Washington said on Tuesday it would seek to cut more costs to combat a downturn in freight demand that pressured its fourth-quarter results.
"Despite the company reducing headcount in each quarter of 2023 .... expenses are still high when compared to our efficiency target," CFO Bradley Powell said.
The Seattle, Washington-based company reported a profit of $1.09 per share, missing analysts' estimates of $1.23 per share, according to LSEG data.
The post-pandemic shift in U.S. consumer spending from goods to services, combined with global shipping delays, have left freight companies straddled with reduced transport volumes.
"We continue to face further market uncertainty due to the current conflicts in the Middle East and on the Red Sea," Expeditors CEO Jeffrey Musser said.
Profit at Expeditors also took a hit from available transportation capacity exceeding market demand.
The company reported quarterly revenue of $2.28 billion, below estimates of $2.31 billion.
Revenue at the company's air freight segment fell to $866.1 million from $1.20 billion last year, while its ocean freight segment reported a revenue of $511.9 million, compared with $1.12 billion a year earlier.