Business & Investment

According to XPO, the strong results in the fourth quarter show that companies have turned away from the effects of the pandemic. 2021-02-10

XPO Logistics Inc., a conglomerate in the transportation and warehousing industry, today pointed out consumers’ love for e-commerce. A strong fourth quarter that helped the company regain financial momentum After pandemic pressure led to a sharp loss earlier in the year.

As it progresses through the plan Spin off contract logistics department from less than truck load (LTL) and truck brokerage department By late 2021, XPO, based in Greenwich, Connecticut, reported quarterly revenue of $ 4.7 billion. This is the highest in the company’s 10-year history, 13% higher than in the fourth quarter before Covid in 2019.

This surge in revenue resulted in net income of $ 128 million in the fourth quarter, a significant increase from $ 107 million in the year-ago quarter. However, this rise was not enough to save XPO’s full-year profits, dropping from $ 440 million in 2019 to $ 117 million in 2020.

Looking at future results, XPO predicted that the momentum of the fourth quarter would continue until the New Year. The company has released 2021 EBITDA (Interest, Taxes and Pre-Depreciation Profit) forecasts ranging from $ 1.725 billion to $ 1.8 billion. If it achieves that goal, it will record a EDITDA of only $ 1.059 billion in the pandemic-ravaged 2020, a significant improvement over the 16.3% decrease from $ 1.265 billion in 2019.

“Four-quarter revenue, revenue, and free cash flow were all well above expectations. XPO Chairman and CEO Brad Jacobs invested in talent and technology in 2020, which is what he’s been up to. We were able to make the highest profits in the quarter.

“In addition, truck brokerage net sales doubled year-over-year, and LTL-adjusted occupancy in the fourth quarter, excluding real estate profits, improved for the sixth straight year. The industry’s biggest tailwind was in 2021. Behind us — e-commerce fulfillment and returns, supply chain outsourcing, and fast-growing customer demand for our digital capabilities, ”said Jacobs.

An XPO spokesperson cited some specific reasons for the company’s fourth-quarter rebound, including a 110% increase in XPO’s trucking brokerage net revenue compared to the fourth quarter of 2019. .. Other highlights include the steady growth of the company’s XPO direct shared distribution network and the XPO Connect mobile app, spokesman.

XPO processed five times as many inventory units in 2020 as in 2019 using robotic technologies such as commodity interpersonal robots and joint robotic arms, much of its growth supported by increased deployment of automated systems. .. In North America, the company applied robot technology to more than 25% of its direct shipments to consumer e-commerce in 2020, a spokeswoman said.

According to XPO, the strong results in the fourth quarter show that companies have turned away from the effects of the pandemic. 2021-02-10

https://www.dcvelocity.com/articles/49523-xpo-says-strong-fourth-quarter-results-show-company-has-turned-a-corner-from-pandemic-impacts According to XPO, the strong results in the fourth quarter show that companies have turned away from the effects of the pandemic. 2021-02-10

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