XPO Logistics: Global leaders show continued growth
The company boasts its ability to u...
XPO Logistics, founded in 2011, is a global leader when it comes to providing transportation and logistic services.
The company boasts its ability to use its networks to help customers manage goods efficiently and successfully across their supply chains. XPO’s core company values are: safety, respect, inclusive, innovative and entrepreneurial.
XPO Logistics has recently announced its third quarter financial results, further solidifying its strong position as global leaders and its ability to continuously grow.
Highlights from the company’s third quarter report:
Revenue: increased year-on-year to US$4.15bn
Net income (common shareholders): increased year-on-year to US$117mn
Operating income: increase year-on-year to US$229mn
Free cash flow range: remained year-on-year the same between US$575mn to US$675mn
Bradley Jacobs, chairman and chief executive officer of XPO Logistics commented on the results:
“In the third quarter, we grew EPS by 54% and adjusted EPS by 33% year-over-year. We also delivered a solid beat on adjusted EBITDA, outpacing the macro through cost control and margin discipline. In less-than-truckload, our adjusted operating ratio was a third quarter record. We remain firmly on track to generate at least $1 billion of EBITDA from LTL in 2021. Our significant investments in technology are creating tailwinds across our operations. We’re executing on 10 initiatives that represent a pool of $700 million to $1 billion of potential profit improvement over the next several years. One large opportunity is to apply our XPO Smart productivity tools to the $5 billion of annual costs related to our variable labor spend. All 10 initiatives are specific to XPO and largely independent of the operating environment. We’re very focused on the size of the prize and the meaningful potential uplift to our profitability.”
Did you know? 69% of the fortune 100 trusts XPO with its business.
For more information on all topics for Procurement, Supply Chain & Logistics - please take a look at the latest edition of Supply Chain Digital magazine.
Image source: XPO Logistics
DHL Express Invests in Electric Cargo Plane Fleet
DHL Express has ordered 12 fully electric cargo planes to supercharge efforts in reducing carbon emissions across its US delivery network.
The Alice eCargo planes are manufactured by Seattle startup Eviation, and are designed specifically to be configured for either cargo or passengers. The first planes are expected to be delivered to DHL Express in 2024.
“We have found the perfect partner with Eviation as they share our purpose, and together we will take off into a new era of sustainable aviation,” said John Pearson, CEO of DHL Express.
The purchase forms part of DHL’s €7bn investment in reducing CO2 emissions by 2030, with a zero emissions target set for 2050.
“We firmly believe in a future with zero-emission logistics,” Pearson added. “On our way to clean logistics operations, the electrification of every transport mode plays a crucial role and will significantly contribute to our overall sustainability goal of zero emissions.”
What is Eviation's Alice Aircraft?
- Manufacturer: Eviation
- Capacity: 1,200kg
- Range: 815km
- Charge time: 30 minutes
- Launching: 2024
Eviation’s Alice aircraft enable cargo and passenger airlines to operate zero-emission fleets. The plane can be flown by one pilot and is capable of carrying 1,200kg, with a maximum range of 815km.
The aircraft can be fully charged in 30 minutes, which can take place while the vehicle is loaded and unloaded between flights. Eviation says that, because the aircraft has fewer moving parts - or points of failure - than traditional aircraft, they are more reliable and reduce maintenance overheads and downtime.
“With Alice’s range and capacity, this is a fantastic sustainable solution for our global network,” said Travis Cobb, EVP Global Network Operations and Aviation for DHL Express. “Our aspiration is to make a substantial contribution in reducing our carbon footprint, and these advancements in fleet and technology will go a long way in achieving further carbon reductions.”
How Does Alice Compare with UPS’ eVTOLs?
DHL Express is not alone in electrifying the skies. In April, UPS announced a new fleet of eVTOL (Vertical Takeoff and Landing) aircraft, from Beta Technologies, which will enter service in 2024.
UPS’ vehicles can carry 635kg with a 400km range and cruising speeds of up to 170mph. The eVTOLs can carry cargo to several short-hops or one long route on a single charge, and are aimed at healthcare organisation, SMEs and businesses in small or remote communities.
“These new aircraft will create operational efficiencies in our business, open possibilities for new services, and serve as a foundation for future solutions to reduce the emissions profile of our air and ground operation,” said Juan Perez, UPS Chief Information and Engineering Officer.
The first 10 eVTOLs will be delivered in 2024, with the option for UPS to order up to 150 more.