XPO Logistics Loss Narrows as Revenue, Margins Climb

XPO Logistics Inc. narrowed its loss on an adjusted basis of $7.3 million, or 13 cents, compared with $10.9 million in the year-earlier period as revenue growth continued and margins improved.

The Greenwich, Connecticut-based company’s revenue more than tripled to $662.5 million, reflecting a combination of acquisitions and 48% growth at its existing businesses. Net revenue, or the amount left after purchased transportation costs, more than quadrupled, to $175.1 million. Brokerage, the largest unit with $518.2 million in revenue, raised margins to 20.8% from 18.1%.

 “It was a landmark quarter,” Bradley Jacobs, CEO of XPO told TT on Nov. 5, citing success in raising $1.2 billion in capital and closing its largest acquisition as well as improving its results.

The adjusted loss excludes one-time costs such as acquisition expense.

Jacobs reported that the Pacer intermodal business, included in the brokerage segment, was being helped by improved rail service in the past two months as well as internal hiring, training, incentive pay and technology steps.

Truck capacity also remains relatively tight, he said.

Margins are improving, Jacobs told TT, because of a combination of internal corporate initiatives and market conditions.

Results also improved in the expedited and the freight forwarding units. Revenue in the newly added contract logistics sector was $50.1 million.