In the first quarter of 2019, revenue was $4.12bn, compared with $4.19bn for the same period in 2018. Results were adversely impacted by a reduction in business from the company’s largest customer and foreign currency exchange rates.
Adjusted EBITDA increased to $343m for the first quarter 2019, compared with $330m for the same period in 2018. Adjusted EBITDA for the first quarter 2019 excludes: $13m of restructuring costs, primarily severance; and $1m of transaction, integration and rebranding costs.
The company’s transportation segment generated revenue of $2.66bn, compared with $2.77bn for the same period in 2018. This was primarily due to lower freight brokerage and last mile direct postal injection revenue, as well as the adverse impact of foreign currency exchange, partially offset by growth in the North American less-than-truckload (LTL) and European transport segments.
Operating income for the transportation segment was $128m, compared with $139m for the same period in 2018. Adjusted EBITDA was $264m, compared with $266m for the same period in 2018. In North American LTL, yield improved by 3% year-over-year, excluding fuel, compared with 1.1% improvement in the prior quarter.
The logistics segment generated revenue of $1.49bn, a 3.2% increase from the same period in 2018. Organic revenue growth was 8.1%. Segment revenue was led by significant growth in the company’s e-commerce, food and beverage, consumer packaged goods and aerospace verticals, partially offset by the adverse impact of foreign currency exchange.
Operating income for the logistics segment was $46m, compared with $48m for the same period in 2018, primarily reflecting a higher depreciation expense related to prior capital investments in new business wins. Adjusted EBITDA for the segment was $113m, an increase of 0.9% from a year ago. The increase in adjusted EBITDA primarily reflects growth from existing customers and from start-ups in recent quarters.
Source: XPO Logistics
