- 9 November 2020
- Transport / Logistics Services
Revenues were up and profits down at XPO Logistics in the third quarter (Q3) of the financial year by comparison to 2019.
Revenue grew to $4.22bn as against $4.15bn in 2019, while net income attributable to shareholders fell to $84 million against $117 million in Q3 2019.
Brad Jacobs, chairman and chief executive officer of XPO Logistics, said: “Our business rebounded dramatically in the third quarter. Revenue, adjusted EBITDA, adjusted EPS and free cash flow were all decisively higher than expected. Our growth was broad-based, spanning our service offerings and geographies.
“Supply chain outsourcing is accelerating, and e-commerce continues to be a huge tailwind for us, particularly in contract logistics and last mile. We grew our last mile revenue by 11% in the quarter, year-over-year, by leveraging our North American hubs and XPO Direct network. In truck brokerage, we realized revenue growth of 27%, with a 13% increase in net revenue per load. Our XPO Connect technology is a major driver of these results — all of our non-asset transportation services now use this powerful platform to manage their freight movements.”
Jacobs continued, “Importantly, in North American less-than-truckload, our focus on yield, service and efficiency improved our third quarter operating ratio to 81.7%, the best operating ratio of any quarter in the history of our LTL operation. Our adjusted OR was also a record at 79.7%.”