Trucking and logistics provider XPO Logistics Inc. reported records for first quarter profit and revenue due to increasing e-commerce business.
Net income was $72.6 million or 56 cents per share, compared to $21.3 million, or 18 cents per share, for the same period in 2017. Revenue increased 18.4% year-over-year to $4.19 billion.
The company's transportation segment generated revenue of $2.77 billion for the quarter, a 16% increase from the same period in 2017.
Segment revenue growth was led by increases in freight brokerage and last mile in North America, as well as dedicated truckload transportation in Europe, and favorable foreign exchange rates, according to the company.
Operating income for the transportation segment increased to $139 million in the quarter, compared with $105.3 million for the same period in 2017.
XPO’s logistics segment generated revenue of $1.45 billion for the quarter, a 23.2% increase from the same period in 2017.
The increase in revenue was led by strong global demand for e-commerce contract logistics, as well as gains from the industrial sector in North America and the fashion sector in Europe, particularly in the UK, Netherlands, Spain and Italy, according to the company. Favorable foreign exchange rates were also a benefit to revenue.
Operating income for the logistics segment increased to $47.5 million, compared with $32.9 million for the same period in 2017.
"We're off to a strong start in 2018. We delivered record first quarter results for revenue, net income, earnings per share and adjusted EBITDA,” said Bradley Jacobs, chairman and CEO. “Our 11% organic revenue growth reflected a healthy diversification of customer verticals and service lines. Organic growth in last mile was 15%, and logistics was 14%, both driven by e-commerce demand.”
Connecticut-based XPO is the second-largest third-party logistics provider in the U.S. and the 7th largest in the world, according to research cited lately by the Wall Street Journal.