XPO Logistics first half profit up 4pc to US$798 million as sales fall 2.4pc
XPO Logistics first half operating profit was up four per cent year on year to US$798 million drawn on revenues of $8
XPO Logistics first half operating profit was up four per cent year on year to US$798 million drawn on revenues of $8.56 billion, down 2.4 per cent.
Connecticut's XPO said the dip reflected a reduction in freight brokerage and direct postal injection business from the company's largest customer, but remained upbeat.
'We're implementing innovations in North American LTL to drive the next leg of profit improvement,' said CEO Bradley Jacobs.
'Our workforce productivity tools are returning positive results in 18 pilot service centres ahead of the national roll-out to all 290 LTL centres this year.
'We're developing an entire suite of proprietary tools that utilise machine learning for dynamic pricing, route optimisation, linehaul efficiency and yard management,' he said.
The LTL unit was up 1.9 per cent in revenue, hitting $1.6 billion, contrasting with a 4.5 per cent decline in transportation revenues.
Meanwhile, the company's logistics segment generated revenue of $1.53 billion for the second quarter, a 1.2 per cent year-on-year increase, with organic revenue growth recorded at 4.8 per cent.
It said the growth was led 'by food and beverage, consumer packaged goods, aerospace and healthcare in North America and by e-commerce in Europe, largely offset by unfavourable foreign currency exchange and a reduction in business from the company's largest customer'.