North America-based logistics company, XPO Logistics, released it financial results for Q3 2017 on 1 November, reporting a boost to its revenue for the same period compared to Q3 2016.
The company's logistics segment generated revenue of €1.2 billion for the quarter, compared with €1.1 billion for the same period in 2016. The increase in revenue was reportedly led by strong demand for contract logistics both in Europe and North America, partially offset by a decline in managed transportation revenue in North America. In Europe, contract logistics growth was led by e-commerce and cold chain contracts in the United Kingdom, Spain and the Netherlands. In North America, the largest gains came from the e-commerce and industrial sectors.
“In the third quarter, we generated the highest revenue, net income and cash flow of any quarter in our history, and our $370 million [€317 million] of adjusted EBITDA beat expectations,” said XPO Logistics Chairman and Chief Executive Officer, Bradley Jacobs.
“We benefited from positive market dynamics, including e-commerce demand for contract logistics and last mile, growth in intermodal, and a brokerage market that is trending in our favor. Our diversification is yielding results,” he said.
Jacobs has said the company is executing major initiatives around pricing, utilisation and sales productivity to capitalise on larger opportunities, closing €1.8 billion in new business through September, which is reportedly up 49 per cent with a pipeline exceeding €2.5 billion globally.
“These levers, combined with our leading positions in key sectors, are fuelling organic growth that continues to outpace the industry,” said Jacobs. “We're exploring acquisition opportunities that will augment this momentum.”