XPO Profit Jumps As It Mulls More Acquisitions, USA Truck Losses Grow
XPO Logistics’ profit during the second quarter was 11.7% higher than a year ago, as a separate report said the company is looking to greatly expand its business in the next year or two. In contrast, USA Truck saw its second quarter loss more than double as revenue declined.
XPO Logistics
Net income totaled $47.6 million, or 38 cents per share, compared to $42.6 million in the second quarter of 2016, or 35 cents per share. Revenue increased nearly 2.2% to $3.76 billion.
“The most notable growth came in last mile and contract logistics, two fast-growing parts of the supply chain where we hold leading positions in e-commerce,” said Bradley Jacobs, chairman and CEO. “Importantly, we’re continuing to grow adjusted EBITDA faster than revenue in both transportation and logistics.”
The company’s transportation segment generated revenue of $2.41 billion in the quarter. This compares with $2.42 billion for the same period in 2016, which included $133.4 million of revenue from the North American truckload unit divested in October 2016.
Segment revenue was led by increases in truck brokerage and last mile, partially offset by a decrease in global forwarding revenue and unfavorable foreign exchange rates, according to the company.
Operating income for the transportation segment increased to $160 million in the quarter, compared with $153.2 million a year ago.
XPO’s Logistics segment generated revenue of $1.4 billion for the quarter, compared with $1.33 billion for the same period in 2016.
The year-over-year increase was primarily due to strong demand for contract logistics in both Europe and North America, partially offset by a decline in managed transportation revenue and unfavorable foreign exchange rates, according to XPO. In Europe, contract logistics growth was led by e-commerce and cold chain contracts in the UK and the Netherlands. In North America, the largest gains came from the e-commerce and industrial sectors.
Operating income for …Read the rest of this story
