XPO Logistics Chairman and CEO Bradley Jacobs said strong e-commerce growth more than offset the weak intermodal environment during the quarter.
XPO Logistics recorded a net income of $32.1 million for the fourth quarter of 2016, up from a net loss of $63.1 million for the fourth quarter of 2015.
Revenues for the fourth quarter of 2016 surged 10 percent year-over-year to $3.68 billion.
XPO Logistics Chairman and CEO Bradley Jacobs said strong e-commerce growth more than offset the weak intermodal environment during the quarter.
The transportation segment recorded revenues of $2.33 billion for the quarter, while the logistics segment posted revenues of $1.38 billion, year-over-year increases of 10.8 percent and 8.6 percent, respectively, primarily fueled by the company’s $3 billion acquisition of Con-way on Oct. 30, 2015 and the organic growth in both North America and Europe, XPO Logistics said.
In October 2016, TransForce Inc., Canada’s largest trucking carrier, bought XPO Logistics’ full truckload transportation business for $558 million, the companies announced. XPO said it would use the proceeds to pay down debt. The deal included around 3,000 tractors, 7,500 trailers and 29 facilities XPO had acquired through its Con-way purchase.
For the full year of 2016, XPO recorded a net income of $84.5 million, up from a net loss of $191.6 million for 2015, while revenues for 2016 surged 91.8 percent year-over-year to $14.62 billion.
Looking ahead to 2017, Jacobs said, “This year, we’ll get the full 12-month benefit of numerous efficiencies we implemented throughout 2016 in procurement, real estate, back office operations and workplace technologies. We have more savings to realize in each of these areas, along with cross dock and warehouse automation, labor productivity and the global adoption of best practices.”
XPO ups results for Q4 2016 amid rising e-commerce demand
