Earnings Watch: XPO Logistics Glows as USA Truck, Celadon Deal with Woes
One of the biggest names in trucking reported first quarter earnings this week showing it turned its fortunes around for the better, while losses grew at another fleet and a third’s financial problems were surrounded not only by questions of its accounting practices but also about its long-term survival.
XPO Logistics Inc. said it recorded net income of $19.5 million, or 16 cents per share, compared to a net loss a year ago of $23.2 million, or 21 cents per share. The per share performance matched Wall Street expectations.
Revenue was just slightly lower at $3.54 billion, with the year earlier figure excluding revenue from the former Con-way truckload unit that XPO sold off in late 2016.
“We started the year on a strong note by solidly beating our expectations for earnings, and continuing to expand margins in both transportation and logistics,” said Bradley Jacobs, chairman and CEO. “In North American less-than-truckload, we increased operating income by a robust 49%, in part by running our linehaul, cross-dock and pickup-and-delivery operations more efficiently. Our market-leading position in e-commerce continued to drive growth in last mile and contract logistics, and our intermodal unit won the largest contract in any business line in XPO history.”
The company’s transportation segment generated revenue of $2.28 billion for the quarter, compared with $2.3 billion for the same period in 2016, reflecting the divestiture of the North American truckload unit, according to XPO. The divested operations contributed $128.8 million of revenue in the first quarter of 2016. The company said organic revenue growth for the segment was led by last mile and truck brokerage, partially offset by lower revenue in expedited and global forwarding, and unfavorable foreign exchange rates.
Operating income for the transportation segment increased to $100.8 million, compared with operating income of $75.4 million a year ago
XPO’s logistics segment generated …Read the rest of this story
