C.H. Robinson Worldwide (CHRW) 8-K C.H. Robinson Reports Fourth Quarter Results

Earnings Conference Call –

Fourth Quarter 2011

January 31, 2012

John Wiehoff, Chairman & CEO

Chad Lindbloom, CFO

Angie Freeman, VP Investor Relations

Exhibit 99.2

2

Safe Harbor Statement

Except for the historical information contained herein, the matters set forth in this presentation

and the accompanying earnings release are forward-looking statements that represent our

expectations, beliefs, intentions or strategies concerning future events. These forward-looking

statements are subject to certain risks and uncertainties that could cause actual results to differ

materially from our historical experience or our present expectations, including, but not limited to

such factors as changes in economic conditions, including uncertain consumer demand;

changes in market demand and pressures on the pricing for our services; competition and

growth rates within the third party logistics industry; freight levels and increasing costs and

availability of truck capacity or alternative means of transporting freight, and changes in

relationships

with

existing

truck,

rail,

ocean

and

air

carriers;

changes in our customer base due

to possible consolidation among our customers; our ability to integrate the operations of acquired

companies with our historic operations successfully; risks associated with litigation and

insurance coverage; risks associated with operations outside of the U.S.; risks associated with

the potential impacts of changes in government regulations; risks associated with the produce

industry, including food safety and contamination issues; fuel prices and availability; and the

impact of war on the economy; and other risks and uncertainties detailed in our Annual and

Quarterly Reports.

3

Q4 & YTD 2012 Results

2011

2010

% Change

2011

2010

% Change

Total revenues

$2,568,284

$2,325,349

10.4%

$10,336,346

$9,274,305

11.5%

Total net revenues

$401,385

$388,164

3.4%

$1,632,658

$1,467,978

11.2%

Income from operations

$171,955

$164,065

4.8%

$692,730

$622,860

11.2%

Net income

$109,214

$103,161

5.9%

$431,612

$387,026

11.5%

Earnings per share

(diluted)

$0.67

$0.62

8.1%

$2.62

$2.33

12.4%

Three months ended December 31

Twelve months ended December 31

In thousands, except per share amounts

•

Active customers in 2011: approximately 37,000, compared to 36,000 in 2010

•

Active carriers in 2011: approximately 53,000, compared to 49,000 in 2010

•

Approximately 10.0 million shipments in 2011, up from 9.2 million in 2010

4

Transportation Results Q4 2011

•

Volumes up in nearly all services in Q4.

•

Pricing changes varied by service line.

•

Consolidated transportation net revenue margin declined in the quarter, due in part to fuel

impact.

•

Transportation margin fluctuations driven by fuel, supply and demand, account management

strategies, and mix.

2011

2010

% Change

2011

2010

% Change

Total revenues

$2,200,258

$1,946,325

13.0%

$8,740,524

$7,575,659

15.4%

Total net revenues

$358,672

$341,773

4.9%

$1,443,916

$1,273,129

13.4%

Net revenue margin

16.3%

17.6%

-7.2%

16.5%

16.8%

-1.7%

Three months ended December 31

Twelve months ended December 31

TRANSPORTATION  in thousands

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Q1

17.5%

17.7%

17.8%

16.8%

17.4%

18.3%

20.2%

18.2%

22.6%

17.4%

Q2

16.9%

16.1%

15.9%

15.4%

16.3%

17.1%

17.9%

15.4%

20.6%

15.8%

Q3

16.6%

15.6%

16.0%

15.9%

16.3%

17.5%

18.0%

15.9%

19.8%

16.6%

Q4

16.0%

16.2%

15.8%

16.0%

15.7%

18.3%

17.7%

19.0%

18.3%

17.6%

TRANSPORTATION MARGIN PERCENTAGE

2011

17.2%

16.2%

16.4%

16.3%

5

Truck Results Q4 2011

2011

2010

% Change

2011

2010

% Change

$306,443

$290,465

5.5%

$1,236,611

$1,076,247

14.9%

Three months ended December 31

Twelve months ended December 31

TRUCK NET REVENUES in thousands

Quarter

Year to Date

Volume

7%

5%

Pricing *

3%

5%

Net revenue margin

TRUCKLOAD

Quarter

Year to Date

Volume

14%

15%

Pricing

Net revenue margin

LTL

Year over year change

Year over year change

*Excluding estimated impact of fuel

•

Truckload net revenue growth was driven by volume growth, partially offset by decreased net revenue

margin.

•

Decline in Truckload net revenue margin due to the higher cost of fuel and cost per mile rising faster

than price per mile.

•

Less-than-Truckload (LTL) net revenue growth was driven primarily by increased volumes and

increased pricing, offset partially by a decreased net revenue margin.

6

Intermodal Results Q4 2011

•

Net

revenue

growth

was

driven

by

volume

growth,

partially

offset

by

decreased

net

revenue

margin.

•

Net revenue margin decline due to changing mix of business.

•

We are achieving our operational and service metric goals with committed and pooled

equipment.

2011

2010

% Change

2011

2010

% Change

$10,189

$9,441

7.9%

$41,189

$36,550

12.7%

Three months ended Dec. 31

Twelve months ended Dec. 31

INTERMODAL NET REVENUES  in thousands

Year over year change

Volume

Pricing

Net revenue margin

Quarter

Year to Date

7

Ocean & Air Results Q4 2011

•

Ocean net revenue growth was driven by increased volumes, largely offset by decreased

pricing.

•

Air net revenue decline was driven by decreased volumes, pricing, and net revenue margin

compression.

•

Significant volume and price volatility.

2011

2010

% Change

2011

2010

% Change

Ocean

$17,022

$16,714

1.8%

$66,873

$60,763

10.1%

Air

$8,811

$10,756

-18.1%

$39,371

$42,315

-7.0%

Three months ended Dec. 31

Twelve months ended Dec. 31

NET REVENUES  in thousands

Quarter

Year to Date

Volume

Pricing

Net revenue margin

OCEAN

Quarter

Year to Date

Volume

Pricing

Net revenue margin

AIR

Year over year change

Year over year change

8

Other Logistics Services Results Q4 2011

•

Other Logistics Services includes Transportation Management Fees, Customs, Warehousing,

and Small Parcel.

•

Net revenue growth primarily due to increases in our management fee and customs services.

•

Integrated, outsourced logistics arrangements, including fee-based services, are providing

continued growth in Other Logistics Services.

2011

2010

% Change

2011

2010

% Change

$16,207

$14,397

12.6%

$59,872

$57,254

4.6%

Three months ended Dec.  31

Twelve months ended Dec. 31

NET REVENUES  in thousands

9

Sourcing Results Q4 2011

•

Sourcing net revenues continue to be impacted by change in product and customer mix.

•

Volume growth offset by decreased net revenue margin.

2011

2010

% Change

2011

2010

% Change

Total revenues

$352,744

$364,337

-3.2%

$1,535,528

$1,643,174

-6.6%

Total net revenues

$27,431

$31,704

-13.5%

$128,448

$139,377

-7.8%

Net revenue margin

7.8%

8.7%

-10.6%

8.4%

8.5%

-1.4%

Three months ended Dec. 31

Twelve months ended Dec. 31

SOURCING  in thousands

10

Payment Services Results Q4 2011

•

Volume

growth

was

driven

by

increase

in

MasterCard

®

and

other

fuel

card

services.

•

Increased fees were driven by higher fuel prices and changes to merchant agreements.

2011

2010

% Change

2011

2010

% Change

$15,282

$14,687

4.1%

$60,294

$55,472

8.7%

Three months ended Dec. 31

Twelve months ended Dec. 31

PAYMENT SERVICES Net Revenues in thousands

Quarter

Year to Date

Volume

Pricing

Year over year change

11

Summarized Income Statement

2011

2010

% Change

2011

2010

% Change

Total net revenues

$401,385

$388,164

3.4%

$1,632,658

$1,467,978

11.2%

Operating expenses:

Personnel expenses

$164,062

$169,271

-3.1%

$696,233

$632,064

10.2%

Percent of net revenues

40.9%

43.6%

42.6%

43.1%

Other operating expenses

$65,368

$54,828

19.2%

$243,695

$213,054

14.4%

Percent of net revenues

16.3%

14.1%

14.9%

14.5%

Total Operating expenses

$229,430

$224,099

2.4%

$939,928

$845,118

11.2%

Income from Operations

$171,955

$164,065

4.8%

$692,730

$622,860

11.2%

Percent of net revenues

42.8%

42.3%

42.4%

42.4%

Three months ended December 31

Twelve months ended December 31

In thousands, except per share amounts

•

Overall, operating expense growth was in line with growth of business.

•

For the quarter, personnel expense decreased compared to last year and decreased as a

percentage of net revenues. This decrease was driven by a reduction in certain incentive

compensation plans that are based on growth in earnings, including our restricted stock

program.

•

Other operating expense growth was driven by an increase in claims, travel, temporary

services,

depreciation,

and

amortization

of

internally

developed

software.

12

2011

2010

% Change

2011

2010

% Change

Net cash provided by

operating activities

$136,157

$207,643

-34.4%

$429,712

$344,779

24.6%

Capital expenditures, net

$23,725

$6,962

240.8%

$52,806

$28,677

84.1%

Three months ended Dec. 31

Twelve months ended Dec. 31

Quarter

Year to Date

Shares repurchased

1,259,369

3,540,171

Average price per

share

$67.84

$69.75

Total cost of shares

repurchased

$85,436,299

$246,934,597

Dec. 31, 2011

Cash & investments

$373,669

Current assets

$1,611,543

Total assets

$2,138,041

Current liabilities

$876,632

Stockholder’s equity

$1,248,474

Long term debt

$0

CASH FLOW DATA

2011

BALANCE SHEET DATA

REPURCHASES OF COMMON STOCK

Other Financial Information

In thousands, except per share amounts

13

Long Term Growth Strategy

•

Our goal is a long term average growth rate of 15% for Net Revenue,

Operating Income, and Diluted EPS.

•

Our strategies for reaching that long-term goal include:

•

Taking market share

•

Adding new supply chain services to our portfolio

•

Expanding our global network

•

Despite our size in our industry, our market share is still small.  We have

significant available market share opportunity.

•

Supply chain trends, globalization, and increased volatility driving growing

demand for our service model.

14

Historical Financial Summary

Operating Results (in 000’s) (1)

Percent Change (1)

Percent of Net

Revenue (1)

(1)

Excludes special dividends and distributions related to our initial public offering in October 1997.

Period

Gross

Revenue

Net

Revenue

Total

Expense

Operating

Income

Diluted

EPS

Net

Revenue

Operating

Income

Diluted

EPS

Operating

Income

1996

$1,605,905

$179,069

$129,040

$50,029

$0.19

11.9%

11.2%

11.8%

27.9%

1997

$1,790,785

$206,020

$149,285

$56,735

$0.22

15.1%

13.4%

15.8%

27.5%

1998

$2,038,139

$245,666

$177,223

$68,443

$0.26

19.2%

20.6%

18.2%

27.9%

1999

$2,261,027

$293,283

$209,445

$83,828

$0.32

19.4%

22.5%

23.1%

28.6%

2000

$2,822,175

$419,343

$305,791

$113,552

$0.40

43.0%

35.5%

25.0%

27.1%

2001

$3,090,072

$456,572

$328,170

$128,402

$0.47

8.9%

13.1%

17.5%

28.1%

2002

$3,294,473

$483,778

$334,846

$148,932

$0.52

6.0%

16.0%

10.6%

30.8%

2003

$3,613,645

$544,848

$368,802

$176,046

$0.62

12.6%

18.2%

19.2%

32.3%

2004

$4,341,538

$660,991

$438,223

$222,768

$0.79

21.3%

26.5%

27.4%

33.7%

2005

$5,688,948

$879,750

$553,389

$326,361

$1.16

33.1%

46.5%

46.8%

37.1%

2006

$6,556,194

$1,082,544

$664,699

$417,845

$1.53

23.1%

28.0%

31.9%

38.6%

2007

$7,316,223

$1,243,778

$734,094

$509,684

$1.86

14.9%

22.0%

21.6%

41.0%

2008

$8,578,614

$1,374,963

$803,377

$571,586

$2.08

10.5%

12.1%

11.8%

41.6%

2009

$7,577,189

$1,381,959

$797,148

$584,811

$2.13

0.5%

2.3%

2.4%

42.3%

2010

$9,274,305

$1,467,978

$845,118

$622,860

$2.33

6.2%

6.5%

9.4%

42.4%

2011

$10,336,346

$1,632,658

$939,928

$692,730

$2.62

11.2%

11.2%

12.4%

42.4%

CAGR

Gross Revenue

Net Revenue

Total Expense

Operating Income

Diluted EPS

5yr  06-11

9.5%

8.6%

7.2%

10.6%

11.4%

10yr  01-11

12.8%

13.6%

11.1%

18.4%

18.7%

15yr 96-11

13.2%

15.9%

14.2%

19.1%

19.1%

15

2012 Comments

•

Through January 30:

•

North American Truckload volume growth per business day was

approximately 7%

•

Total net revenue growth per business day was approximately 6%

•

We are hiring, investing heavily in training and our people.

•

We are aggressively selling and developing our relationships.

•

We continue to make significant investments in our IT capabilities.

•

Our scale and financial stability continue to be important advantages.