XPO Logistics has announced financial results for the second quarter of 2017. Revenue was $3.76 billion for the quarter, compared with $3.68 billion for the same period in 2016. Revenue increased year-over-year by $210.4 million, excluding the second quarter 2016 revenue from the North American truckload unit divested in October 2016. Adjusted EBITDA stood at $370.8 million for the quarter. This compares with $354.9 million of adjusted EBITDA for the same period in 2016.
The company’s transportation segment generated revenue of $2.41 billion in the quarter. This was down slightly against the $2.42 billion revenues received in the same period in 2016, which included $133.4 million of revenue from the North American truckload unit. Segment revenue was led by increases in truck brokerage and last mile, partially offset by a decrease in global forwarding revenue and unfavourable foreign exchange rates. Adjusted EBITDA was $282.7 million, up 2.5% year-over-year. This was primarily due to an improvement in adjusted operating ratio in the North American less-than-truckload unit, partially offset by higher purchased transportation costs in truck brokerage and intermodal.
The logistics segment generated revenue of $1.40 billion for the quarter, up 5.3% year-over-year. The increase in revenue was primarily due to strong demand for contract logistics in both Europe and North America, partially offset by a decline in managed transportation revenue and unfavourable foreign exchange rates. In Europe, contract logistics growth was led by e-commerce and cold chain contracts in the UK and the Netherlands. In North America, the largest gains came from the e-commerce and industrial sectors. Adjusted EBITDA for the segment improved by 15.1% to $123.0 million.
Source: XPO Logistics
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