Record profit report for XPO Logistics
This week, Connecticut’s XPO Logistics reported its first profitable quarter in four years, posting a record US $42.6 million profit, or 35 cents per diluted share.
XPO also increased its 2016 financial targets and now anticipates adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of at least $1.265 billion — up from previous guidance of $125 billion. It also expects free cash flow of at least $150 million, an increase of $100 million.
"In the second quarter, we generated $355 million of adjusted EBITDA, $261 million of cash flow from operations, and $170 million of free cash flow — all records for our company,” said Bradley Jacobs, Chairman and Chief Executive Officer of XPO Logistics.
“We're at an inflection point in the evolution of our business, accelerating our EBITDA and cash generation while continuing to invest in technology, our sales force and other levers of future growth.”
Jacobs added that the company is growing revenue by offering end-to-end logistics solutions, from arranging freight transport, to managing goods and delivering goods to customers’ front doors.
"Our strong performance in the quarter was led by our North American operations for last mile and less-than-truckload, and by our European supply chain operations,” he said.
“While market conditions were sluggish overall, e-commerce was a major tailwind - driving margin expansion in last mile, and resulting in major contract wins in contract logistics on both sides of the Atlantic.”
Supply Chain Digital's July issue is now live.
Follow @SupplyChainD on Twitter.