Expeditors Reports Second Quarter 2013 EPS of $.45 Per Share 1

Expeditors Reports Second Quarter 2013 EPS of $.45 Per Share1

SEATTLE--(BUSINESS WIRE)-- Expeditors International of Washington, Inc. (NAS: EXPD) today announced net earnings attributable to shareholders of $92,315,000 for the second quarter of 2013, as compared with $83,955,000for the same quarter of 2012, an increase of 10%. Net revenues2 for the second quarter of 2013 increased 3% to $469,101,000 as compared with $453,651,000 for the same quarter in 2012. Total revenues and operating income were $1,500,453,000 and $143,579,000in the second quarter of 2013, as compared with $1,504,952,000 and $132,403,000 for the same quarter of 2012, a marginal decrease and an increase of 8%, respectively. Diluted net earnings attributable to shareholders per share for the second quarter were $.45, as compared with $.39 for the same quarter in 2012, an increase of 15%.

For the six months ended June 30, 2013, net earnings attributable to shareholders was $172,630,000, as compared with $160,662,000 in 2012, an increase of 7%. Net revenues for the six months increased to $914,385,000 from $900,222,000 for 2012, up 2%. Total revenues and operating income for the six months were $2,910,938,000 and $272,097,000 in 2013, as compared with $2,916,322,000 and $257,674,000 for the same period in 2012, a marginal decrease and an increase of 6%, respectively. Diluted net earnings attributable to shareholders per share for the first two quarters of 2013 were $.83, as compared with $.75 for the same period of 2012, an increase of 11%.


"These results are very significant to us and we continue to be encouraged by our progress. The beginning signs of improvement we noticed during our 2013 first quarter, picked up during the second quarter," said Peter J. Rose, Chairman and Chief Executive Officer. "While the global economy is still slowly emerging from the fundamental problems that have held it in thrall over the last five years, and slowly is the operative word, we've selectively grown market share this quarter. Our airfreight volumes were up again, for the third straight quarter, by 5%. Ocean FEU count on a yearly quarter-over-quarter basis was up 2%, as was our order management activity. The volatility of the pricing environment continues to require focused attention to both the buy and sell elements of the air and ocean marketplace. We think these results prove we did a good job of that during the second quarter," Rose went on to say.

"Moving successfully through difficult times without having those difficult times move through us requires commitment to and confidence in the power of our culture and faith in our people and their knowledge and ability to execute in the markets we deal in," Rose continued. "It takes discipline and integrity to win short-term market share battles without losing the long-term profitability wars that successful companies are built upon and which creates long-term shareholder value. Many businesses struggle with executing that strategic trade-off. Fortunately for us, our people, who are the core and cause of our success, have admirably demonstrated that they have ample amounts of both. We're grateful for their efforts and we're grateful to our customers, and our shareholders, who both benefit from the aligned efforts of our people," Rose concluded.

Expeditors is a global logistics company headquartered in Seattle, Washington. The company employs trained professionals in 188 full-service offices and numerous satellite 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, domestic time definite transportation services, purchase order management and customized logistics solutions.

1 Diluted earnings attributable to shareholders per share.

2 Non-GAAP measure calculated as revenues less directly related operating expenses attributable to the Company's principal services. See reconciliation on the last page of this release.

NOTE: See Disclaimer on Forward-Looking Statements on the following page of this release.

Expeditors International of Washington, Inc.

Second Quarter 2013 Earnings Release, August 6, 2013

Financial Highlights for the Three and Six months ended June 30, 2013 and 2012 (Unaudited)

(in 000's of US dollars except share data)

Three months ended June 30,

Six months ended June 30,

%

%

2013

2012

Change

2013

2012

Change

Revenues

$

1,500,453

$

1,504,952

%

$

2,910,938

$

2,916,322

%

Net revenues1

$

469,101

$

453,651

3

%

$

914,385

$

900,222

2

%

Operating income

$

143,579

$

132,403

8

%

$

272,097

$

257,674

6

%

Net earnings attributable to shareholders

$

92,315

$

83,955

10

%

$

172,630

$

160,662

7

%

Diluted earnings attributable to shareholders

$

.45

$

.39

15

%

$

.83

$

.75

11

%

Basic earnings attributable to shareholders

$

.45

$

.40

13

%

$

.84

$

.76

11

%

Diluted weighted average shares outstanding

207,192,534

213,212,912

207,421,805

213,683,587

Basic weighted average shares outstanding

206,444,464

211,724,082

206,459,701

211,910,872

1 Non-GAAP measure calculated as revenues less directly related operating expenses attributable to the Company's principal services. See reconciliation on the last page of this release.

Employee headcount as of June 30,

2013

2012

North America

4,761

4,764

Asia Pacific

3,881

3,979

Europe and Africa

2,323

2,308

Middle East and India

1,213

1,249

Latin America

679

660

Information Systems

628

587

Corporate

270

243

Total

13,755

13,790

Year-over-year percentage increase in:

Airfreight kilos

Ocean freight FEU

2013

April

9%

2%

May

7%

—%

June

1%

3%

Quarter

5%

2%

Investors may submit written questions via e-mail to:investor@expeditors.com. Questions received by the end of business on August 9, 2013 will be considered in management's 8-K "Responses to Selected Questions" expected to be filed on or about August 23, 2013.

Disclaimer on Forward-Looking Statements:

Certain portions of this release contain forward-looking statements which are based on certain assumptions and expectations of future events that are subject to risks and uncertainties, including comments on recovery of global economy; ability to grow market share; ability to successfully manage volatile buy and sell rates; ability to execute and create long-term shareholder value. Actual future results and trends may differ materially from historical results or those projected in any forward-looking statements depending on a variety of factors including, but not limited to, our ability to maintain consistent and stable operating results, future success of our business model, ability to perpetuate profits, changes in customer demand for Expeditors' services caused by a general economic slow-down, customers' inventory build-up, decreased consumer confidence, volatility in equity markets, energy prices, political changes, foreign exchange rates, regulatory actions or changes or the unpredictable acts of competitors and other risks, risk factors and uncertainties detailed in our Annual Report as updated by our reports on Form 10-Q, filed with the Securities and Exchange Commission.

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share data)

(Unaudited)

June 30, 2013

December 31, 2012

Assets

Current Assets:

Cash and cash equivalents

$

1,286,109

$

1,260,842

Short-term investments

89,902

139

Accounts receivable, net

1,018,337

1,031,376

Deferred Federal and state income taxes

11,999

12,102

Other current assets

69,431

53,140

Total current assets

2,475,778

2,357,599

Property and equipment, net

549,583

556,204

Goodwill

7,927

7,927

Other assets, net

30,377

32,395

$

3,063,665

$

2,954,125

Liabilities and Equity

Current Liabilities:

Accounts payable

645,196

641,593

Accrued expenses, primarily salaries and related costs

196,789

178,995

Federal, state and foreign income taxes

18,228

21,970

Total current liabilities

860,213

842,558

Deferred Federal and state income taxes

81,510

78,997

Commitments and contingencies

Shareholders' Equity:

Preferred stock; none issued

Common stock, par value $.01 per share; issued and outstanding 206,321,425 shares at June 30, 2013 and 206,392,013 shares at December 31, 2012

2,063

2,064

Additional paid-in capital

3,534

1,283

Retained earnings

2,129,349

2,018,618

Accumulated other comprehensive (loss) income

(15,105

)

5,734

Total shareholders' equity

2,119,841

2,027,699

Noncontrolling interest

2,101

4,871

Total equity

2,121,942

2,032,570

$

3,063,665

$

2,954,125

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(In thousands, except share data)

(Unaudited)

Three months ended

Six months ended

June 30,

June 30,

2013

2012

2013

2012

Revenues:

Airfreight services

$

642,969

$

638,541

$

1,263,343

$

1,277,453

Ocean freight and ocean services

492,007

518,998

937,486

953,334

Customs brokerage and other services

365,477

347,413

710,109

685,535

Total revenues

1,500,453

1,504,952

2,910,938

2,916,322

Operating Expenses:

Airfreight services

483,016

484,311

947,935

965,354

Ocean freight and ocean services

380,727

413,447

725,650

745,401

Customs brokerage and other services

167,609

153,543

322,968

305,345

Salaries and related costs

255,569

249,925

503,986

496,057

Rent and occupancy costs

22,132

20,853

43,789

42,029

Depreciation and amortization

11,674

9,670

22,952

19,215

Selling and promotion

8,328

8,860

15,585

17,523

Other

27,819

31,940

55,976

67,724

Total operating expenses

1,356,874

1,372,549

2,638,841

2,658,648

Operating income

143,579

132,403

272,097

257,674

Interest income

3,070

3,050

6,313

6,410

Other, net

4,325

3,460

5,856

3,937

Other income, net

7,395

6,510

12,169

10,347

Earnings before income taxes

150,974

138,913

284,266

268,021

Income tax expense

58,311

54,892

110,993

107,278

Net earnings

92,663

84,021

173,273

160,743

Less net earnings attributable to the noncontrolling interest

348

66

643

81

Net earnings attributable to shareholders

$

92,315

$

83,955

$

172,630

$

160,662