XPO Logistics Reports Strong Q4 Results
Top ten logistics provider XPO Logistics, (NYSE: XPO) has announced that for the fourth quarter of 2016 revenue increased 10.0% year-over-year to $3.68 billion. Net income attributable to common shareholders was $27.3 million for the quarter, or earnings of $0.22 per diluted share, compared with a net loss attributable to common shareholders of $62.8 million, or a loss of $0.58 per diluted share, for the same period in 2015.
For the full year 2016, the company generated $625.4 million of cash flow from operations and $210.9 million of free cash flow, a non-GAAP financial measure.
The company reaffirmed its full year targets for adjusted EBITDA of at least $1.350 billion for 2017 and $1.575 billion for 2018.
XPO also issued a 2017–2018 cumulative free cash flow target of approximately $900 million, including at least $350 million of free cash flow generated in 2017.
Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said, “We generated the strongest growth in last mile and contract logistics, driven primarily by e-commerce, more than offsetting a weak intermodal environment. Our less-than-truckload operations in North America capped an outstanding year with a 40% increase in fourth quarter adjusted operating income.”
In terms of key segments for the company, the transportation category generated total revenue of $2.33 billion for the quarter, compared with $2.10 billion for the same period in 2015. The year-over-year increase in revenue was primarily due to the acquisition of Con-way Inc. on October 30, 2015, and to organic growth in both North America and Europe, partially offset by the divestiture of the North American full truckload unit on October 27, 2016. Organic revenue growth for the segment was led by the last mile unit, primarily driven by an increase in e-commerce business. Revenue growth was partially offset by softness in North American intermodal volumes.
The company’s logistics segment generated total revenue of $1.38 billion for the quarter, compared with $1.27 billion for the same period in 2015. The year-over-year increase in revenue was primarily due to the Con-way acquisition and to organic growth in both North America and Europe. In Europe, organic growth from new contracts with e-commerce and cold-chain customers was negated by the adverse impact of foreign exchange rates. In North America, growth was largely driven by gains in e-commerce, food and beverage, and aerospace business, partially offset by softness in automotive.
For the full year 2016, the company reported total revenue of $14.62 billion, a 91.8% increase from 2015. Net income attributable to common shareholders was $63.1 million, or $0.53 per diluted share, compared with a net loss of $245.9 million, or a loss of $2.65 per diluted share, for 2015.
XPO Logistics, Inc. (NYSE: XPO) operates as a highly integrated network of people, technology and physical assets in 34 countries, with over 87,000 employees and 1,425 locations. XPO uses its network to help more than 50,000 customers manage their goods more efficiently throughout their supply chains.
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