CONNECTICUT's XPO Logistics saw its net profit rise 189 per cent year on year in the second quarter to US$137
CONNECTICUT's XPO Logistics saw its net profit rise 189 per cent year on year in the second quarter to US$137.5 million as revenue increased 16 per cent to $4.36 billion. XPO chief executive Bradley Jacobs said the record results were chiefly driven by ongoing growth in e-commerce demand and a combined $2.1 billion in new business wins garnered during the first two quarters, reported American Shipper.
'Our strong second quarter performance was highlighted by record results for revenue, net income, adjusted EBITDA, cash flow from operations and free cash flow,' said Mr Jacobs.
'We grew profitability faster than revenue, with a 178 per cent increase in net income and an 18 per cent increase in adjusted EBITDA on organic revenue growth of 11 per cent.'
XPO's transportation segment saw its first quarter operating income rise 24.5 per cent to $205.4 million on revenues that rose 14.5 per cent to $2.89 billion compared with the same quarter a year earlier, led by increases in freight brokerage and last mile in North America, as well as dedicated truckload transportation in the United Kingdom and France.
Operating income and revenues in the company's logistics segment amounted to $67.3 million and $1.51 billion respectively year-on-year with profit up 36.2 per cent and sales rising 19.1 per cent.
'In logistics we implemented a record 37 customer start-ups in three months - and once again the big driver was e-commerce,' said Mr Jacobs. 'In transportation we increased freight brokerage net revenue by 46 per cent with a lower headcount. North American last mile and European transport were also standouts.
'We have innovations under way in every corner of the company,' he added. 'They include the ramp-up of our XPO direct distribution network, the build-out of our digital freight marketplace, the expansion of our last mile footprint and the deployment of dynamic analytics for workforce planning.'
