XPO Logistics Reports Fourth-Quarter Loss of $62.8 Million
XPO LogisticsXPO Logistics Inc. reported fourth-quarter results that included a loss of $62.8 million, or 58 cents per share, and a glimpse of less-than-truckload performance at the former Con-way Freight unit that was acquired in October.
Reflecting the acquisitions of Con-way and French firm Norbert Dentressangle last year, XPO, of Greenwich, Connecticut, nearly quadrupled revenue to $3.34 billion from $830.7 million. In the year-earlier period, the loss was $51.5 million, or 77 cents.
XPO reported $559 million in Con-way LTL revenue from two months of ownership but did not provide year-over-year profitability comparisons in the statement. In the comparable prior-year period, Con-way’s LTL business generated $36.8 million of profit before interest and taxes, accounting for about 90% of the company’s profit on that business and $897.2 million in LTL revenue.
CEO Bradley Jacobs told Transport Topics that the operating ratio at the LTL business was 95.0 in November and December, an improvement from the 95.9 in those same two months of 2014.
“We are certainly not going to stop at a 95.0 OR,” he said. “Give us time. It is a totally different company than it was four months ago.”
Con-way was acquired for $3 billion, five months after the purchase of Norbert Dentressangle.
XPO has targeted $170 million to $210 million in annual cost reductions at its LTL unit and already has reduced expenses by $50 million annually.
XPO reported tons per day slipped 3.6%, shipments per day fell 4% and rates per 100 pounds of freight were down 2.4% including fuel surcharge, and 3% higher excluding the fees.
On the positive side, net revenue, or the amount remaining after paying transport costs, improved in XPO’s other businesses, including brokerage, last-mile, expedited and global forwarding businesses.
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|By Rip Watson|
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