XPO – profits up on depressed revenues

The first half (H1) of 2019 saw operating profit at XPO Logistics grow by 5.7% to $390 million. This is despite a fall in revenues of 2.3% to $258 million.

Q2 revenues fell by 2.9% to $4.2 billion, though operating profits grew by 13% to $258 million.

The logistics segment of XPO saw revenues of $1.53bn.

“Segment revenue growth was led by food and beverage, consumer packaged goods, aerospace and healthcare in North America and by e-commerce in Europe, largely offset by unfavourable foreign currency exchange and a reduction in business from the company’s largest customer.”

Bradley Jacobs, chairman and chief executive officer, said: “We beat on EPS, adjusted EBITDA and free cash flow in the second quarter, offsetting a softer operating environment with cost discipline and margin gains. In North American freight brokerage, we improved net revenue margin to 20.4 per cent, up 360 basis points from last year’s second quarter. In North American less-than-truckload, we improved yield by 3.9 per cent and realise a record adjusted operating ratio of 80.3 per cent.”

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