XPO posts record revenues
GREENWICH — XPO Logistics notched company-record revenues in the first three months of the year, as it saw across-theboard growth amid the accelerating economic recovery from the downturn sparked by the coronavirus pandemic.
The Greenwich-based transportation-and-logistics provider announced this week first-quarter revenues of $4.8 billion, surging 24 percent from a year ago. Profits soared to $115 million, compared with $21 million a year ago.
“We had a tremendous first quarter that beat expectations and gave us a very strong start to 2021,” XPO CEO and Chairman Bradley Jacobs said in an earnings call Tuesday with investment analysts.
Among milestones in the past quarter, an XPO customer signed a $1.8 billion contract, the largest in the company’s history. XPO declined to name the client that signed the deal, but it said that the agreement would extend and expand through 2032 the company’s partnership with that longstanding customer.
In another major boost, Apple announced last week that it would open a distribution center in Clayton, Ind., which would be run and staffed by XPO. Apple said that the new facility would create about 500 jobs, supported by a $100 million “advanced manufacturing fund” investment.
XPO shares closed Tuesday at about $142, up 0.4 percent from Monday. Their 52-week high is about $143, and their 52week low is around $61.
The No. 196 company on last year’s Fortune 500 list is growing as it advances with its plan to split into two separately run and publicly traded companies in the second half of this year. XPO intends to retain its global transportation operations — which are primarily truck brokerage and “less-than-truckload” shipping services — while spinning off its global contractlogistics business into a separate company known as GXO Logistics, which will be headquartered in London.
Transportation revenues grew 22 percent to $3 billion, powered by an 83 percent jump in returns in North American truck brokerage, which facilitates the movement of goods by connecting shippers and carriers.
“In truck brokerage, the story is growth, growth and more growth,” Jacobs said. “The big driver behind our brokerage performance is our technology and the productivity we’re getting from XPO Connect, our digital platform.”
Logistics’ revenues rose 26 percent to $1.8 billion.
“In logistics, our growth is being driven by the big three tailwinds of e-commerce, outsourcing and customer demand for warehouse automation,” Jacobs said.
XPO has committed to keeping the remainder of its organization headquartered in Greenwich after it completes the spinoff.
“Connecticut is a great place to be for XPO,” Josephine Berisha, XPO’s chief human resources officer, said last month. “Having our headquarters in Greenwich helps us attract world-class talent from the area, while serving as an attractive destination for professionals all over the world who relocate to join our team.”
Among XPO’s approximately 45,000 U.S. employees, around 600 are based in Connecticut — including about 75 at its headquarters at 5 American Lane in Greenwich’s northwest corner.
In addition to the headquarters, XPO operates a “last mile” hub for heavy goods and a less-than-truckload terminal in Bridgeport; a less-than-truckload terminal in Meriden; last-mile hubs in Norwich, Wallingford and Windsor; and logistics facilities in North Haven and Windsor.
The company announced last month that it was hiring in North America for approximately 750 commercial truck-driver jobs and 700 dockworker positions for its lessthan-truckload business. Ten of those positions will be based in Connecticut.
XPO is contributing in its home state to a transportation, warehousing and utilities sector that has performed robustly in recent months. Those operations accounted for about 68,000 jobs in the state in March, up 11 percent year over year, according to the state Department of Labor. Every other major industry in the state has seen year-over-year employment declines.