The third-party logistics provider’s two reporting segments – transportation and logistics – both experienced year-over-year increases in operating income and gross revenues resulting from various acquisitions throughout 2015.
XPO Logistics, Inc.’s most recent financial statements revealed the company’s net income attributable to common shareholders totaled $42.6 million for the second quarter of 2016 compared to a net loss of $75.1 million for the second quarter of 2015.
The Greenwich, Conn.-based third-party logistics provider’s total gross revenues reached $3.7 billion compared to $1.2 billion for last year’s second quarter.
XPO’s adjusted net income attributable to common shareholders totaled $50.4 million for the quarter, a sharp increase from the net loss of $13.6 million for the second quarter of 2015. The company’s adjusted net income attributable to common stockholders for the second quarter of this year excluded $21.5 million (or $13.9 million after-tax) of one-time transaction-related and rebranding costs net of non-controlling interests; and a $6.1 million (or $4.1 million after-tax) benefit related to unrealized foreign exchange cost.
The company’s adjusted diluted earnings per share for the quarter totaled $0.42, more than double the street consensus of $0.19 per share and Stifel’s estimate of $0.20 per share, Stifel said.
“Our strong performance in the quarter was led by our North American operations for last mile and less-than-truckload (LTL), and by our European supply chain operations,” XPO Logistics Chairman and CEO Bradley Jacobs 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. In LTL, we increased operating income by 66 percent from last year’s second quarter, pre-acquisition.”
XPO’s two reporting segments – transportation and logistics – both reported strong increases in operating income and gross revenues compared to the second quarter of 2015.
The transport segment posted an operating income of $153.2 million on gross revenues of $2.4 billion, a sharp increase from the second quarter of 2015’s operating income of $23 million on revenues of $861.2 million.
Meanwhile, the logistics segment’s operating income skyrocketed from $4.3 million for the second quarter of last year to $51.1 million, while gross revenues jumped from $359.6 million to $1.3 billion for this year’s second quarter.
XPO attributed the segments’ increases to the acquisitions it made in 2015. XPO’s acquisitions in 2015 included the purchase of asset-based trucking carrier Con-way for $3 billion, French trucking and logistics provider Norbert Dentressangle for over $3.5 billion, the motor carrier Bridge Terminal Transport Services for $100 million and UX Specialized Logistics for $59 million. The latter of the four mentioned was the only acquisition to occur before the second quarter of 2015.
XPO’s net income, revenues skyrocket in Q2
