XPO Logistics Inc. on Tuesday announced financial results for the fourth quarter and full year 2016 with both revealing it moved well into the black.
For the fourth quarter of 2016, revenue increased 10% from the same time in 2015 to $3.68 billion. Net income was $29.8 million, or 22 cents per share, compared with a net loss $63.1 million, or a loss of 58 cents per share, for the same period in 2015.
"I'm pleased that we delivered record fourth quarter results for net income, cash flow from operations, adjusted EBITDA and free cash flow,” said Bradley Jacobs, chairman and CEO. “We generated the strongest growth in last mile and contract logistics, driven primarily by e-commerce, more than offsetting a weak intermodal environment. Our less-than-truckload operations in North America capped an outstanding year with a 40% increase in fourth quarter adjusted operating income.”
XPO’s transportation segment generated total revenue of $2.33 billion for the quarter, compared with $2.1 billion for the same period in 2015.
The year-over-year increase in revenue was primarily attributed to the acquisition of Con-way Inc. in October 2015 and to organic growth in both North America and Europe, partially offset by the divestiture of the former Con-way Truckload in October 2016.
“Organic revenue growth for the segment was led by the last-mile unit, primarily driven by an increase in e-commerce business. Revenue growth was partially offset by softness in North American intermodal volumes,” XPO said in a statement.
Operating income for the transportation segment increased to $84 million, compared with an operating loss of $6.1 million a year ago.
The company's logistics segment generated total revenue of $1.38 billion for the quarter, compared with $1.27 billion for the same period in 2015.
In Europe, organic growth from new contracts with e-commerce and cold-chain customers was negated by the adverse impact of foreign exchange rates. In North America, growth was largely driven by gains in e-commerce, food and beverage, and aerospace business, partially offset by softness in automotive.
Operating income for the logistics segment increased to $51.2 million, compared with $34.8 million a year ago.
For all of 2016 XPO nearly doubled its revenue from 2015, totaling $14.62 billion. Last year’s net income of $69 million, or 53 cents per share, compares to a net loss of $191.1 million in 2015, or a loss of $2.65 per share.
The company reaffirmed its full year targets for adjusted EBITDA of at least $1.35 billion for 2017 and $1.575 billion for 2018. XPO’s adjusted EBITDA for 2016 totaled $937.1 million, up 189.2% from 2015.