SEATTLE, Aug. 07, 2018 (GLOBE NEWSWIRE) -- Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced second quarter 2018 financial results including the following highlights compared to the same quarter of 2017:

-- Diluted Net Earnings Attributable to Shareholders per share (EPS1) increased 32% to $0.79 -- Net Earnings Attributable to Shareholders increased 29% to $141 million -- Operating Income increased 9% to $184 million -- Revenues increased 17% to $2.0 billion -- Net Revenues2 increased 14% to $643 million -- Airfreight tonnage volume increased 4% and ocean container volume increased 1%

“We continued to add profitable growth from new and existing customers during the quarter, particularly in air and some of our differentiated, best-in-class services, such as brokerage, Transcon, and order management,” said Jeffrey S. Musser, President and Chief Executive Officer. “Similar to the first quarter of this year, we remained disciplined on pricing in this strong economy. We experienced strong performance in our ocean forwarding and order management businesses, but ocean freight net revenues were down 5% on a 1% increase in volumes, as carriers took steps to mitigate the impact of volatile pricing, excess capacity, and higher fuel costs.

“We are continuing to invest in people and assets in the development and support of profitable revenue growth, most notably during Q2 in Europe and North America. While we have yet to see changes to supply chains as a result of possible trade wars, we are confident in the capabilities of our people throughout our global network to help our customers navigate the potential impact of new tariffs.”

Bradley S. Powell, Senior Vice President and Chief Financial Officer, added that the Company’s effective tax rate for the quarter was 25.8%, compared to 37.4% a year ago. The lower effective tax rate in the most recent quarter was principally due to the lower U.S. federal tax rate that resulted from the 2017 Tax Act, coupled with significant share-based compensation deductions from stock option exercises during the quarter. Mr. Powell emphasized that the Company’s effective tax rate in future periods will largely depend on the mix of pretax earnings that are generated in its U.S. versus foreign operations, as well as further interpretation of, and guidance to be issued on, the new tax law.

Expeditors is a global logistics company headquartered in Seattle, Washington. The Company employs trained professionals in 177 district offices and numerous branch 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 and 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.

Expeditors International of Washington, Inc.Second Quarter 2018 Earnings Release, August 7, 2018Financial Highlights for the Six months ended June 30, 2018 and 2017 (Unaudited)(in 000's of US dollars except per share data)

Three months ended June 30, Six months ended June 30, % % 2018 2017 Chang 2018 2017 Chang e e ------------ ------------ ---- ------------ ------------ ---- Revenues1 $ 1,957,559 $ 1,672,279 17 % $ 3,811,821 $ 3,217,411 18 % Net revenues2 $ 642,546 $ 563,633 14 % $ 1,278,384 $ 1,091,238 17 % Operating income3 $ 183,584 $ 168,240 9 % $ 376,402 $ 314,354 20 % Net earnings attributable to shareholders $ 140,605 $ 108,851 29 % $ 276,297 $ 202,115 37 % Diluted earnings attributable to $ 0.79 $ 0.60 32 % $ 1.54 $ 1.11 39 % shareholders per share Basic earnings attributable to shareholders $ 0.80 $ 0.60 33 % $ 1.58 $ 1.12 41 % per share Diluted weighted average shares outstanding 178,603 182,033 179,120 182,091 Basic weighted average shares outstanding 174,754 180,012 175,324 180,037

_______________________1Effective January 1, 2018, the Company adopted required new revenue recognition guidance, resulting in a $22 million net reduction to the opening balance of retained earnings. In addition, in conjunction with the adoption of new revenue recognition guidance, the Company also changed the presentation of certain warehouse and distribution revenues from a net to a gross basis, which increased both revenues and operating expenses in customs brokerage and other services by approximately $50 million in both the first and second quarters of 2018. Comparative prior year revenues (and the related volume information in the table below) has not been adjusted and continue to be reported under the Company's historical policies. 2018 reported revenues (and the related volume information) are reported under the Company's new revenue recognition accounting policies.

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.

3The quarter and year-to-date periods ended June 30, 2017 include the recovery of certain legal and related fees totaling $8 million and the favorable resolution of an indirect tax contingency of $6 million.

During the three and six-month periods ended June 30, 2018, we repurchased 3.1 million and 5.8 million shares of common stock at an average price of $76.22 and $70.92 per share, respectively. During the three and six-month periods ended June 30, 2017, we repurchased 1.5 million and 2.5 million shares of common stock at an average price of $55.02 and $55.58 per share, respectively.

Employee Full- time Equivalents as of June 30, 2018 2017 ------- ------- North America 6,414 6,009 Europe 3,205 2,847 North Asia 2,616 2,698 South Asia 1,604 1,602 Middle East, Africa and India 1,466 1,531 Latin America 801 791 Information Systems 892 881 Corporate 351 390 ------ ------ Total 17,349 16,749

Second quarter year-over-year percentage increase (decrease) in: Airfreight kilos Ocean freight FEU ---------------- ----------------- 2018 ------- April 1% (2)% May 6% 5% June 6% —% ---------------- ----------------- Quarter 4% 1%

_______________________Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on August 10, 2018 will be considered in management's 8-K “Responses to Selected Questions” expected to be filed on or about August 24, 2018.

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 our ability to generate profitable market growth; our ability to help our customers navigate the potential impact of new tariffs; the impact of the 2017 Tax Act on our effective tax rate; energy and fuel prices; political changes; changes and uncertainties in governmental policies and inter-governmental disputes; foreign exchange rates; regulatory actions or changes; and 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 per share data)(Unaudited)

June 30, 2018 December 31, 2017 ------------- ------------- Assets Current Assets: Cash and cash equivalents $ 1,020,854 $ 1,051,099 Accounts receivable, net 1,337,716 1,414,741 Deferred contract costs 136,133 — Other current assets 69,438 75,612 ----------- - ----------- - Total current assets 2,564,141 2,541,452 ----------- - ----------- - Property and equipment, net 515,547 525,203 Goodwill 7,927 7,927 Deferred Federal and state income taxes, net 16,779 13,207 Other assets, net 28,438 29,219 ----------- - ----------- - $ 3,132,832 $ 3,117,008 - --------- - - --------- - Liabilities and Equity Current Liabilities: Accounts payable $ 832,011 $ 866,305 Accrued expenses, primarily salaries and related costs 227,148 206,320 Contract liabilities 161,870 — Federal, state and foreign income taxes 19,244 20,494 ----------- - ----------- - Total current liabilities 1,240,273 1,093,119 ----------- - ----------- - Noncurrent Federal income taxes payable — 29,516 Commitments and contingencies Shareholders’ Equity: Preferred stock; none issued — — Common stock, par value $0.01 per share. Issued and outstanding 173,577 shares at 1,736 1,764 June 30, 2018 and 176,374 shares at December 31, 2017 Additional paid-in capital 1,607 546 Retained earnings 1,977,121 2,063,512 Accumulated other comprehensive loss (90,712 ) (73,964 ) ----------- - ----------- - Total shareholders’ equity 1,889,752 1,991,858 ----------- - ----------- - Noncontrolling interest 2,807 2,515 Total equity 1,892,559 1,994,373 ----------- - ----------- - $ 3,132,832 $ 3,117,008 - --------- - - --------- -

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings(In thousands, except per share data)(Unaudited)

Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 ---------- ----------- ------------ ------------ Revenues: Airfreight services $ 801,761 $ 671,868 $ 1,532,988 $ 1,287,413 Ocean freight and ocean services 530,008 528,585 1,050,891 1,022,344 Customs brokerage and other services 625,790 471,826 1,227,942 907,654 --------- --------- - ----------- ----------- Total revenues 1,957,559 1,672,279 3,811,821 3,217,411 --------- --------- - ----------- ----------- Operating Expenses: Airfreight services 593,325 499,418 1,106,829 942,822 Ocean freight and ocean services 385,156 385,927 764,574 751,990 Customs brokerage and other services 336,532 223,301 662,034 431,361 Salaries and related costs 350,948 318,529 690,843 611,109 Rent and occupancy costs 38,071 29,163 74,984 57,293 Depreciation and amortization 13,576 12,042 27,498 23,969 Selling and promotion 10,788 10,953 21,753 21,868 Other 45,579 24,706 86,904 62,645 --------- --------- - ----------- ----------- Total operating expenses 1,773,975 1,504,039 3,435,419 2,903,057 --------- --------- - ----------- ----------- Operating income 183,584 168,240 376,402 314,354 --------- --------- - ----------- ----------- Other Income (Expense): Interest income 5,153 3,380 9,467 6,121 Other, net 1,167 2,190 1,791 2,488 --------- --------- - ----------- ----------- Other income (expense), net 6,320 5,570 11,258 8,609 --------- --------- - ----------- ----------- Earnings before income taxes 189,904 173,810 387,660 322,963 Income tax expense 48,958 65,055 110,514 120,641 --------- --------- - ----------- ----------- Net earnings 140,946 108,755 277,146 202,322 --------- --------- - ----------- ----------- Less net earnings (loss) attributable to the 341 (96 ) 849 207 noncontrolling interest --------- --------- - ----------- ----------- Net earnings attributable to shareholders $ 140,605 $ 108,851 $ 276,297 $ 202,115 - ------- - ------- - - --------- - --------- Diluted earnings attributable to shareholders per share $ 0.79 $ 0.60 $ 1.54 $ 1.11 - ------- - ------- - - --------- - --------- Basic earnings attributable to shareholders per share $ 0.80 $ 0.60 $ 1.58 $ 1.12 - ------- - ------- - - --------- - --------- Dividends declared and paid per common share $ 0.45 $ 0.42 $ 0.45 $ 0.42 - ------- - ------- - - --------- - --------- Weighted average diluted shares outstanding 178,603 182,033 179,120 182,091 --------- --------- - ----------- ----------- Weighted average basic shares outstanding 174,754 180,012 175,324 180,037 --------- --------- - ----------- -----------

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows(In thousands)(Unaudited)

Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 ------------- ------------- ------------- ------------- Operating Activities: Net earnings $ 140,946 $ 108,755 $ 277,146 $ 202,322 Adjustments to reconcile net earnings to net cash from operating activities: Provision for losses on accounts receivable 528 515 263 1,446 Deferred income tax expense 3,235 7,261 6,088 12,854 Stock compensation expense 18,002 17,203 29,269 27,826 Depreciation and amortization 13,576 12,042 27,498 23,969 Other, net 56 (174 ) 104 (525 ) Changes in operating assets and liabilities: (Increase) decrease in accounts receivable (46,876 ) (73,142 ) 53,771 2,312 Decrease in accounts payable and accrued expenses 58,075 52,623 12,231 34,299 Increase in deferred contract costs (20,019 ) — (16,612 ) — Decrease in contract liabilities 20,294 — 12,893 — Decrease in income taxes payable, net (38,059 ) (47,159 ) (18,550 ) (27,335 ) (Increase) decrease in other current assets (1,202 ) 3,290 (68 ) (275 ) ----------- - ----------- - Net cash from operating activities 148,556 81,214 384,033 276,893 ----------- - ----------- - ----------- - ----------- - Investing Activities: Purchase of property and equipment (12,113 ) (20,380 ) (25,909 ) (33,141 ) Other, net (1,564 ) 40 (1,995 ) (631 ) ----------- - ----------- - ----------- - ----------- - Net cash from investing activities (13,677 ) (20,340 ) (27,904 ) (33,772 ) ----------- - ----------- - ----------- - ----------- - Financing Activities: Proceeds from issuance of common stock 95,363 51,501 121,760 96,866 Repurchases of common stock (235,572 ) (84,052 ) (407,932 ) (137,960 ) Dividends paid (79,180 ) (75,726 ) (79,180 ) (75,726 ) Payments for taxes related to net share settlements (3,215 ) — (3,215 ) — Net cash from financing activities (222,604 ) (108,277 ) (368,567 ) (116,820 ) ----------- - ----------- - ----------- - ----------- - Effect of exchange rate changes on cash and cash (24,322 ) 6,270 (17,807 ) 14,174 equivalents ----------- - ----------- - ----------- - ----------- - (Decrease) increase in cash and cash equivalents (112,047 ) (41,133 ) (30,245 ) 140,475 Cash and cash equivalents at beginning of period 1,132,901 1,156,043 1,051,099 974,435 ----------- - ----------- - ----------- - ----------- - Cash and cash equivalents at end of period $ 1,020,854 $ 1,114,910 $ 1,020,854 $ 1,114,910 - --------- - - --------- - - --------- - - --------- - Taxes paid: Income taxes $ 85,612 $ 103,508 $ 124,131 $ 132,654

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.AND SUBSIDIARIESBusiness Segment Information(In thousands)(Unaudited)

OTHER MIDDLE UNITED NORTH LATIN NORTH SOUTH ASIA EUROPE EAST, ELIMI- CONSOLI- STATES AMERICA AMERICA ASIA AFRICA NATIONS DATED AND INDIA ------------ -------- ------- -------- ---------- -------- --------- --------- ---------- Three months ended June 30, 2018: Revenues from $ 567,271 80,268 38,697 674,101 172,696 315,950 108,576 — 1,957,559 unaffiliated customers Transfers between 30,805 3,976 3,921 6,126 6,832 14,825 5,429 (71,914 ) — geographic areas ----------- ------- ------ ------- ------- -- ------- ------- - ------- - --------- Total $ 598,076 84,244 42,618 680,227 179,528 330,775 114,005 (71,914 ) 1,957,559 revenues - --------- ------- ------ ------- ------- -- ------- ------- - ------- - --------- Net revenues $ 271,880 34,749 15,923 140,583 44,886 102,371 33,125 (971 ) 642,546 Operating $ 63,628 10,077 2,701 70,359 13,374 16,958 6,490 (3 ) 183,584 income Identifiable $ 1,488,060 153,827 54,186 540,954 157,479 526,607 217,716 (5,997 ) 3,132,832 assets Capital $ 6,032 2,191 167 559 695 1,225 1,244 — 12,113 expenditures Depreciation and $ 8,447 473 395 1,303 542 1,955 461 — 13,576 amortization Equity $ 1,196,226 56,702 26,625 250,513 112,259 157,493 127,032 (34,291 ) 1,892,559 Three months ended June 30, 2017: Revenues from $ 452,217 62,554 23,463 620,050 157,698 259,533 96,764 — 1,672,279 unaffiliated customers Transfers between 28,155 2,825 3,759 4,835 5,408 9,664 5,034 (59,680 ) — geographic areas ----------- ------- ------ ------- ------- -- ------- ------- - ------- - --------- Total $ 480,372 65,379 27,222 624,885 163,106 269,197 101,798 (59,680 ) 1,672,279 revenues - --------- ------- ------ ------- ------- -- ------- ------- - ------- - --------- Net revenues $ 250,027 28,173 14,008 120,959 38,228 80,896 30,286 1,056 563,633 Operating $ 64,265 12,317 2,246 58,093 12,513 13,419 5,390 (3 ) 168,240 income Identifiable $ 1,487,582 129,830 48,064 576,655 129,002 437,628 207,191 6,804 3,022,756 assets Capital $ 6,852 569 957 663 409 10,501 429 — 20,380 expenditures Depreciation and $ 7,731 386 300 1,362 556 1,227 480 — 12,042 amortization Equity $ 1,147,962 61,957 24,320 402,211 117,077 135,726 124,628 (35,244 ) 1,978,637

MIDDLE UNITED OTHER LATIN SOUTH EAST, ELIMI- CONSOLI- STATES NORTH AMERICA NORTH ASIA ASIA EUROPE AFRICA NATIONS DATED AMERICA AND INDIA ------------ -------- ------- ---------- -------- -------- -------- ---------- ---------- Six months ended June 30, 2018: Revenues from $ 1,102,140 156,793 71,419 1,304,673 341,296 621,742 213,758 — 3,811,821 unaffiliated customers Transfers between 59,686 7,538 7,308 12,143 13,382 29,013 10,784 (139,854 ) — geographic areas ----------- ------- ------ --------- ------- ------- ------- -------- - --------- Total $ 1,161,826 164,331 78,727 1,316,816 354,678 650,755 224,542 (139,854 ) 3,811,821 revenues - --------- ------- ------ --------- ------- ------- ------- -------- - --------- Net revenues $ 549,065 65,196 30,668 277,791 89,292 201,006 66,326 (960 ) 1,278,384 Operating $ 133,276 19,095 5,071 140,282 28,506 36,236 13,928 8 376,402 income Identifiable assets at $ 1,488,060 153,827 54,186 540,954 157,479 526,607 217,716 (5,997 ) 3,132,832 period end Capital $ 9,203 3,719 672 1,343 1,024 8,416 1,532 — 25,909 expenditures Depreciation and $ 17,212 871 763 2,679 1,125 3,931 917 — 27,498 amortization Equity $ 1,196,226 56,702 26,625 250,513 112,259 157,493 127,032 (34,291 ) 1,892,559 Six months ended June 30, 2017: Revenues from $ 878,236 122,453 45,566 1,186,478 304,938 490,990 188,750 — 3,217,411 unaffiliated customers Transfers between 52,468 5,464 7,394 9,886 10,839 18,986 9,998 (115,035 ) — geographic areas ----------- ------- ------ --------- ------- ------- ------- -------- - --------- Total $ 930,704 127,917 52,960 1,196,364 315,777 509,976 198,748 (115,035 ) 3,217,411 revenues - --------- ------- ------ --------- ------- ------- ------- -------- - --------- Net revenues $ 480,812 53,966 28,924 232,792 76,223 156,854 60,017 1,650 1,091,238 Operating $ 116,611 17,368 5,697 111,445 25,737 25,065 12,433 (2 ) 314,354 income Identifiable assets at $ 1,487,582 129,830 48,064 576,655 129,002 437,628 207,191 6,804 3,022,756 period end Capital $ 12,094 803 1,212 1,903 782 15,579 768 — 33,141 expenditures Depreciation and $ 15,484 758 620 2,682 1,087 2,398 940 — 23,969 amortization Equity $ 1,147,962 61,957 24,320 402,211 117,077 135,726 124,628 (35,244 ) 1,978,637

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 revenues are 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.

Three months ended Six months ended June 30, June 30, (in thousands) 2018 2017 2018 2017 ------------ ------------ ------------ ------------ Total revenues $ 1,957,559 $ 1,672,279 $ 3,811,821 $ 3,217,411 Expenses: Airfreight services 593,325 499,418 1,106,829 942,822 Ocean freight and ocean services 385,156 385,927 764,574 751,990 Customs brokerage and other services 336,532 223,301 662,034 431,361 ----------- ----------- ----------- Net revenues $ 642,546 $ 563,633 $ 1,278,384 $ 1,091,238 - --------- - --------- - --------- - ---------

CONTACTS: Jeffrey S. Musser President and Chief Executive Officer (206) 674-3433 Bradley S. Powell Senior Vice President and Chief Financial Officer (206) 674-3412 Geoffrey Buscher Director - Investor Relations (206) 892-4510