XPO Logistics generates profit

XPO Logistics has made a net profit of $21.3m in Q1 of 2017 as compared to a loss of $22.5m in 2016.

According to the company, sales were $3.5 billion and up by $123 million, this excluding the North American truckload unit that XPO divested in 2016. The logistics giant’s operating profit was up from $62 million to $114 million.

XPO’s logistics division generated a total revenue of $1.3 billion for Q1 as compared to $1.26 billion for the same period in 2016. The company claims that the year on year increase was mainly down to contract logistics in Europe, led by e-commerce and cold chain contracts in Italy, the UK and The Netherlands.

However, the company said this was partially offset by the unfavourable impact of currency fluctuations, particularly with the British pound sterling.

Operating income for the logistics segment increased to $47.2m, compared with $31.9m a year ago.

The company’s transport segment generated revenue of $2.28bn for the quarter, compared with $2.3bn for the same period in 2016, reflecting the divestiture of the North American truckload unit on October 27, 2016.

Operating income for the transport segment increased to $100.8m, compared with operating income of $75.4m a year ago.

Chairman and chief executive Bradley Jacobs said: “We started the year on a strong note by solidly beating our expectations for earnings, and continuing to expand margins in both transport and logistics.

“The $716 million of sales we closed through March was a first quarter record for our company, up significantly from $429 million a year ago.”

The company reaffirmed its full year targets for adjusted EBITDA of at least $1.35 billion for 2017 and at least $1.575 billion for 2018.  
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