XPO Logistics has reported its first profitable quarter in at least four years, as the company has gained new customers and moved forward in acquisition, reports Wall Street Journal.
The Greenwich, Conn.-based company has rolled up businesses from different corners of the logistics industry including multi-billion dollar acquisitions of transportation providers in the US and Europe.
They posted a record $42.6 million profit for the second quarter. This is a very impressive comeback following its $75 million loss only a year earlier.
XPO is growing revenue by offering end-to-end logistics solutions, from arranging freight transportation to managing warehouses to delivering goods to customers’ doors.
Ecommerce continues to be one of the most important tailwinds for margin expansion in last mile on both sides of the Atlantic. – Brad Jacobs, Chief Executive of XPO.
XPO’s transition to profitability comes amid weak demand for freight transportation, which has hit many of XPO’s competitors in the trucking industry. The company has profited like DHL and UPS in excellent Q2 reports due to the surge in ecommerce.
A version of this appeared in The Wall Street Journal on August 3. Read the full version here.