XPO Logistics Reverses Q3 Loss; Reports $13.9M Profit

November 3, 2016  by Larry Thomas in Financial Reports, Industry   

XPO, which counts numerous furniture retailers and manufacturers as clients, said its bottom-line profit totaled $13.9 million or 11 cents per share. That compares with a net loss of $93.1 million or 94 cents per share in the same quarter a year ago

The company said the revenue increase was driven largely by its 2015 acquisition of Con-way Transportation. However, shortly after the quarter ended, XPO announced it had agreed to sell the truckload portion of the former Con-way business to TransForce Inc. for $558 million.

Bradley Jacobs, chairman and CEO, said the results set records for net income, cash flow from operations and adjusted earnings before interest, taxes, depreciation and amortization. (EBITDA)

"We achieved this strong performance in a mixed operating environment,” Jacobs said. “In North America, vigorous demand from e-commerce drove growth in our contract logistics and last mile operations, while brokerage and intermodal were generally soft. “Our less-than-truckload business in North America had another outstanding quarter, with higher yield and lower SG&A. This propelled a 40% increase in LTL operating income versus a year ago, pre-acquisition.”

For the nine months ended Sept. 30, the company reported total revenue of $10.9 billion, a 155.6% increase from the same period in 2015. Net income was $35.8 million, or 30 cents per share, compared with a net loss of $183.5 million, or $2.10 per share, for the same period in 2015.