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Buyouts end in US$75 million loss for XPO Logistics, but sales double
CONNECTICUT's XPO Logistics Inc's second quarter net loss widened to US$75.1 million year on year, but quarterly revenue doubled to $1.22 billion, boosted by its purchase of French forwarding giant Norbert Dentressangle as well as an increase in US trucking capacity.
The company, which is on track to hit a revenue run-rate of $9.5 billion this year, said it targets about $23 billion in revenue by 2019, Reuters reported.
XPO, which acts as a broker between shippers and freight companies, is benefiting from a rise in the number of trucks available to transport goods, especially given widespread bottlenecks on rail networks.
"It's a good time to be a broker if you've got committed freight because your customers are locked in at a specific contractual price," said CEO Bradley Jacobs.
The company said revenue from its transportation business, which includes truck brokerage, truckload and less than truckload, jumped 48 per cent to $861.2 million in the second quarter ended June 30.
The acquisition of Norbert Dentressangle - XPO's biggest-ever deal - was the primary driver of transportation revenue with just 22 days' contribution in the quarter, the company said.
XPO, whose customers include Macy's Inc, ConAgra Foods Inc and Dean Foods Co, said it was scouting for more acquisitions. ¨We have an active acquisition pipeline on both sides of the Atlantic," said Mr Jacobs.
The company, which is on track to hit a revenue run-rate of $9.5 billion this year, said it targets about $23 billion in revenue by 2019, Reuters reported.
XPO, which acts as a broker between shippers and freight companies, is benefiting from a rise in the number of trucks available to transport goods, especially given widespread bottlenecks on rail networks.
"It's a good time to be a broker if you've got committed freight because your customers are locked in at a specific contractual price," said CEO Bradley Jacobs.
The company said revenue from its transportation business, which includes truck brokerage, truckload and less than truckload, jumped 48 per cent to $861.2 million in the second quarter ended June 30.
The acquisition of Norbert Dentressangle - XPO's biggest-ever deal - was the primary driver of transportation revenue with just 22 days' contribution in the quarter, the company said.
XPO, whose customers include Macy's Inc, ConAgra Foods Inc and Dean Foods Co, said it was scouting for more acquisitions. ¨We have an active acquisition pipeline on both sides of the Atlantic," said Mr Jacobs.
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