From Home Furnishing Business
XPO Q3 Profits Soar on 4.7% Revenue Increase
Logistics provider XPO Logistics (NYSE: XPO) said third-quarter revenue rose 4.7% to $3.89 billion, while net income quadrupled to $62.5 million.
The company said the revenue increase was driven by its North American freight brokerage, last-mile delivery and less-than-truckload businesses.
XPO said it was able to record a revenue increase even though last year’s third quarter included $131.8 million in revenues from its North American truckload business, which was sold in October 2016.
The quarterly net income, which equals 44 cents per share, was the highest in the company’s history. In last year’s third quarter, net income was $15.1 million or 11 cents per share.
"In the third quarter, we generated the highest revenue, net income and cash flow of any quarter in our history, and our $370 million of adjusted EBITDA beat expectations,” said Bradley Jacobs, chairman and CEO. “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 favor. 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 fueling organic growth that continues to outpace the industry.”
For the nine months ended Sept. 30, revenue rose 2.2% to $11.19 billion.
Nine-month net income totaled $135.7 million or 99 cents per share. In the first nine months of 2016, the totals were $39.2 million or 30 cents per share.