House of Fraser hits XPO Logistics profits

Due to the collapse of House of Fraser earlier this year, XPO Logistics has cut its full year profit forecast. The collapse resulted in a $15.6 million charge.

XPO’s EBITDA was down to $1.585 billion for the first three quarters of 2018.

Revenues however for the first nine months was up 15.2% to $12.89bn. The adjusted EBITDA has improved to $1.18bn, as against $1.03bn for the same period in 2017.

Bradley Jacobs, chairman and chief executive officer, said: “Our robust organic growth of 10.5 per cent in the quarter was led by strong demand for e-commerce logistics and freight brokerage. In our North American LTL business, we improved the adjusted operating ratio by 220 basis points from a year ago. Companywide, we again grew profitability faster than revenue, despite the impact of a customer bankruptcy.

“Our disciplined investments in growth over the past 18 months are gaining traction. We closed $918 million of new business in the quarter, up 43 per cent from last year, due in large part to our expanded sales organisation and proprietary technology. In contract logistics, we implemented a record 90 customer contracts through September, enabled by intelligent automation.

“We’re continuing to explore acquisition opportunities that will further accelerate our trajectory.”