XPO cuts profits forecast after customer bankruptcy

XPO has cut its full year profit forecast as a result of a customer bankruptcy in the third quarter which resulted in a $15.6 million charge.

Releasing its results for the first three quarter of 2018, it said its EBITDA target was down £1.585 billion – down from at least $1.6 billion.

Revenue for the first nine months was up 15.2 per cent at $12.89 billion. Adjusted EBITDA improved to $1.18 billion, compared with $1.03 billion for the same period in 2017.

Bradley Jacobs, chairman and chief executive officer, said: “Our robust organic growth of 10.5 per cent in the quarter was led by strong demand for e-commerce logistics and freight brokerage. In our North American LTL business, we improved the adjusted operating ratio by 220 basis points from a year ago. Companywide, we again grew profitability faster than revenue, despite the impact of a customer bankruptcy.

“Our disciplined investments in growth over the past 18 months are gaining traction. We closed $918 million of new business in the quarter, up 43 per cent from last year, due in large part to our expanded sales organisation and proprietary technology. In contract logistics, we implemented a record 90 customer contracts through September, enabled by intelligent automation.

“We’re continuing to explore acquisition opportunities that will further accelerate our trajectory.”