XPO Logistics today announced a record-breaking third quarter for revenue, net income and cash flow. The Connecticut-based transport and logistics provider turned over $3,887m in the quarter, 4.7% higher than in the same quarter of the previous year. For the year to date, growth of 2.2% put its turnover at $11,187m.
Operating income for the quarter was up 10.7% year-over-year. For the first nine months of the year, it was up 20.9%.
Net income for the quarter was 233.3% higher than in 2016, at $71m. For the year to date, net income stood at $153.1m, 192.2% higher than the previous year.
The Transportation segment grew revenues by 2.5% in the quarter, despite the divestment of its North American truckload segment earlier in the year. Revenue increases were attributed to North American freight brokerage, less-than-truckload and last mile, and European less-than-truckload. Operating income grew 15.2% due better results in European transportation and North American last mile and freight brokerage.
In the Logistics segment, revenue growth was stronger, at 8.3%. In Europe, XPO said demand for cold chain and e-commerce contract logistics in the UK, Spain and the Netherlands helped grow revenues. It also experienced healthy contract logistics demand in North America, where the e-commerce and industrial sectors provided higher growth. Operating income was up 2.8% due to stronger net revenue growth, but this was partially offset by higher direct operating costs related to new contracts in North America.
Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said, “We benefited from positive market dynamics, including e-commerce demand for contract logistics and last mile, growth in intermodal, and a brokerage market that is trending in our favour. Our diversification is yielding results.”
Jacobs continued, “We’re executing major initiatives around pricing, utilization and sales productivity to capitalize on the large opportunities at hand. Our sales force has closed $2.1 billion of new business through September, up 49%, and our pipeline continues to exceed $3 billion globally. These levers, combined with our leading positions in key sectors, are fuelling organic growth that continues to outpace the industry. We’re exploring acquisition opportunities that will augment this momentum.”
Source: XPO Logistics
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