Robinson results under microscope
Saturday, October 22, 2011
Analysts like the C.H. Robinson business model: The company doesn't own any trucks, preferring instead to hire others to deliver its freight loads at the lowest available prices. Because the company lacks fixed equipment costs, it can weather economic downturns better than trucking firms that own trucks, analysts say.
"They are the quintessential non-asset-based carrier," said Jon Seltzer, a marketing instructor at the University of St. Thomas in St. Paul. "And that puts them in the enviable position of being basically a buyer and seller of transportation services. That gives me underlying confidence that they can weather downturns in the economy."
Originally published: 10/22/2011, Star Tribune