XPO Logistics reported that profits increased 11% in the second quarter, setting new records in net income and revenue on the back of growth in last-mile e-commerce and contract logistics.
The less-than-truckload and third-party logistics giant earned $47.6 million, or 38 cents per share, during the three-month period that ended June 30. On an adjusted basis, profits were $75 million, or 60 cents per share. The Bloomberg News consensus adjusted earnings forecast called for $77.3 million, or 60 cents.
One year ago, XPO’s nonadjusted profits were $42.6 million, or 35 cents per share.
Revenue grew 2.1% to $3.76 billion.
“The investments we’re making in sales and technology have already yielded a record $1.43 billion of new business through June, which is 62% higher than last year,” XPO Logistics CEO Brad Jacobs said in a statement. “Our global pipeline stands at over $3.3 billion, our cost initiatives have substantial runway and the operating environment is favorable. Given these strong fundamentals, we raised our two-year guidance.”
Less-than-truckload revenue increased 7.8% to $946.1 million. Total pounds shipped per day increased 7.1%, weight per shipment increased 3.8% to 1,382 and total shipments per day grew 3.2% to 56,926. Gross revenue per shipment went up to $267.32 from $254.91. Expenses in the LTL division slightly increased $500,000 year-over-year to $168.5 million in the second quarter.
Freight brokerage revenue rose 10% to $572.3 million, but net revenue, after deducting transportation expenses, declined 4.9% to $83.8 million. Nevertheless, operating expenses in the brokerage division were also cut $1.3 million to $22.1 million total.
Last-mile revenue jumped 15% to $230.4 million and went up 11% after removing transportation costs to $69.6 million. Operating expenses went up to $15.1 million from $13.4 one year ago.
North American revenue, removing the amount earned from the European operations, went up 1% to $1.75 billion even though XPO Logistics no longer could count on the $133.4 million from the Con-way’s truckload division, which was sold to TFI International Inc. last fall.
The results continue a remarkable turnaround for the Greenwich, Conn., company. During the first half of 2017, profits have tripled to $67.1 million from $22 million during the same period last year. However, revenue only grew 1% in the first six months to $7.3 billion.
XPO ranks No. 1 on the Transport Topics Top 50 list of the largest logistics companies in North America and No. 3 on the TT100 list of the top North American for-hire carriers.