In the second quarter of 2019, XPO Logistics’ revenue was $4.2bn, compared with $4.4bn for the same period in 2018. Adjusted EBITDA increased to $455m for the second quarter 2019, compared with $437m for the same period in 2018. Adjusted EBITDA for the second quarter 2019 excludes: $4m of restructuring costs, primarily severance; and $1m of transaction, integration and rebranding costs.
The company’s transportation segment generated revenue of $2.75bn for the second quarter 2019, compared with $2.89bn for the same period in 2018. Segment revenue primarily reflects a reduction in freight brokerage and direct postal injection business from the company’s largest customer, foreign currency exchange rates and lower truckload rates in freight brokerage, offset in part by growth in North American less-than-truckload (LTL) and managed transportation.
Operating income for the transportation segment was $243m for the second quarter 2019, compared with $205m for the same period in 2018. Adjusted EBITDA for the segment was $362m for the quarter, compared with $335m for the same period in 2018. In North American LTL, yield improved by 3.9% year-over-year for the second quarter 2019, excluding fuel, compared with 3% improvement for the first quarter 2019.
The logistics segment generated revenue of $1.53bn for the second quarter 2019, a 1.2% increase from the same period in 2018. Organic revenue growth was 4.8%. Segment revenue growth was led by food and beverage, consumer packaged goods, aerospace and healthcare in North America and by e-commerce in Europe, largely offset by foreign currency exchange rates and a reduction in business from the company’s largest customer.
Operating income was $61m for the second quarter 2019, compared with $67m for the same period in 2018. The change in operating income primarily reflects higher depreciation expense related to prior capital investments in new business wins, a reduction in business from the company’s largest customer and foreign currency exchange rates. Adjusted EBITDA for the segment was $136m for the quarter, a 1.5% increase from the same period in 2018. The increase in adjusted EBITDA primarily reflects growth from existing customers and from new business start-ups in recent quarters, offset in part by a reduction in business from the company’s largest customer and foreign currency exchange rates.
For the six months ended June 30, 2019, the company reported total revenue of $8.36bn, compared with $8.56bn for the same period in 2018. Operating income for the first six months of 2019 was $390m, compared with $369m for the same period in 2018.
Adjusted EBITDA for the first six months of 2019 increased to $798m, compared with $767m for the same period in 2018. Adjusted EBITDA for the first six months of 2019 excludes: $17m of restructuring costs, primarily severance; and $2m of transaction, integration and rebranding costs.
Source: XPO Logistics
