Expeditors Reports Third Quarter 2014 EPS of $0.53 Per Share1

Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced net earnings attributable to shareholders of $102,381,000 for the third quarter of 2014, as compared with $92,400,000 for the same quarter of 2013, an increase of 11%. Net revenues2 for the third quarter of 2014 increased 6% to $513,256,000 as compared with $484,902,000 for the same quarter in 2013. Total revenues and operating income were $1,705,105,000 and $159,131,000 in the third quarter of 2014, as compared with $1,537,966,000 and $146,313,000 for the same quarter of 2013, increases of 11% and 9%, respectively. Diluted net earnings attributable to shareholders per share for the third quarter were $0.53, as compared with $0.45 for the same quarter in 2013, an increase of 18%.

For the nine months ended September 30, 2014, net earnings attributable to shareholders was $277,507,000, as compared with $265,030,000 in 2013, an increase of 5%. Net revenues for the nine months increased to $1,462,556,000 from $1,404,781,000 for 2013, up 4%. Total revenues and operating income for the nine months were $4,795,891,000 and $436,777,000 in 2014, as compared with $4,454,398,000 and $418,410,000 for the same period in 2013, increases of 8% and 4%, respectively. Diluted net earnings attributable to shareholders per share for the first three quarters of 2014 were $1.40, as compared with $1.28 for the same period of 2013, an increase of 9%.

"These 2014 third quarter results have given us a great deal of confidence. Double digit growth in both air and ocean freight volumes, something we’ve not seen since the fourth quarter of 2010, resulted in double digit revenue growth and drove double digit net income growth. Firmer ocean pricing offset tightening margins in airfreight while customs brokerage and other services benefited commensurately with air and ocean volume increases," said Jeffrey S. Musser, President and Chief Executive Officer. "We experienced strong operating income growth in both the United States and Europe regions, which again compensated for relative weakness in the Asia Pacific and Middle East and India regions. Fundamentally, the things we look to as benchmarks for operational efficiency and financial achievement were in place this quarter. Our operational efficiency was highlighted by our ability to service double digit volume growth while expanding our operating income as a percentage of net revenue to 31%. Cash flow from operations, while down slightly year-over-year, was still very strong at nearly $87 million. We would also point out that by returning cash to shareholders via stock buy-backs over the course of the last 12 months, our third quarter 2014 EPS grew at a rate of 18%, as compared to a respectable net earnings growth rate of 11%," Musser went on to say.

"Looking forward to the fourth quarter, we are taking these third quarter results in stride. As we’ve said for years, trying to predict trends in these very fast changing air and ocean freight markets is futile. While heartened by the strength of ocean freight in the third quarter, so much of how the fourth quarter will turn out will depend on circumstances that are still playing out in the airfreight markets. Airfreight pricing is still very volatile. New product launches and increases in global demand certainly played out well in the third quarter," Musser continued. "The fourth quarter, with less seasonal ocean freight and more airfreight emphasis, has many more dynamics for us to manage. We are also keenly aware of the well-reasoned concerns about the state of the global economy. We’ll continue to focus on the things that have always been our hallmarks: solid execution, sound negotiation and unfailing customer service. We’re comfortable, backed by the dedication and capabilities of our 14,000+ proven employees working together globally, that we can make that happen," Musser concluded.

Expeditors is a global logistics company headquartered in Seattle, Washington. The company employs trained professionals in 185 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, time-definite transportation, order management, warehousing distribution and customized logistics solutions.

1Diluted earnings attributable to shareholders per share.

2Non-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.

1Non-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.

During the nine-month period ended September 30, 2014, the Company repurchased 9,533,616 shares of common stock, net of issuances.

Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on November 7, 2014 will be considered in management's 8-K “Responses to Selected Questions” expected to be filed on or about November 21, 2014.

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 ability to grow future revenues, grow and maintain margins during periods of pricing volatility, maintain or improve operating income as a percentage of net revenue, and control costs and headcount. 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 control costs and 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.

Net Revenues (Non-GAAP measure)

We commonly refer to the term “net revenues” when commenting about our Company and the results of its operations. Net revenues are a Non-GAAP measure calculated as revenues less directly related operations expenses attributable to the Company's principal services. We believe that net revenues are a better measure than are total revenues when analyzing and discussing our effectiveness in managing our principal services since total revenues earned as a freight consolidator must consider the carriers' charges to us for carrying the shipment, whereas revenues earned in other capacities include primarily the commissions and fees earned by us. Net revenue is one of our primary operational and financial measures and demonstrates our ability to concentrate and leverage purchasing power through effective consolidation of shipments from customers utilizing a variety of transportation carriers and optimal routings. Using net revenues also provides a commonality for comparison among various services. The following table presents the calculation of net revenues.