XPO Logistics made an operating profit of $166 million in the third quarter, compared with $24.2m in 2014. In Europe, adjusted EBITDA in Europe was up over 26 per cent year-over-year for transport and 17 per cent for logistics.
The group’s gross revenue was up by 256.5 per cent to $2.4 billion and net revenue was up 542.4 per cent to $1.1bn. On a GAAP basis, the company reported a net loss of $35.4 million for the quarter, compared with a net loss of $11.6 million for the same period in 2014.
Bradley Jacobs, chairman and chief executive officer, said: “In our first full quarter of global results, we drove adjusted EBITDA to $166 million, significantly exceeding our target. In our transport segment, we improved margins year-over-year by optimizing our pricing and lowering our cost of purchased transport in truck brokerage and intermodal, last mile, expedite and global forwarding.
“We’re operating our logistics segment more profitably worldwide, and we’re executing on an exciting pipeline of cross-selling opportunities. Our European operations overall are performing well ahead of expectations – adjusted EBITDA in Europe was up over 26 per cent year-over-year for transport and 17 per cent for logistics.
XPO has just completed the takeover of Con-Way making it the second largest less-than-truckload provider in North America.
The company has set itself new financial targets:
For 2016, full year adjusted EBITDA of at least $1.25 billion based on existing operations.
For 2018, full year adjusted EBITDA of approximately $1.7 billion based on existing operations, an increase from the $1.5 billion previously targeted for 2019.