GREENWICH — Transportation-and-logistics giant XPO Logistics rebounded in the summer from the initial disruption of the coronavirus crisis, as it this week reported higher revenues across the board for the past quarter.
Third-quarter revenues for the Greenwich-based firm increased about 2 percent year over year to approximately $4.2 billion.
Profits totaled $93 million, compared with $130 million a year ago. The bottom line reflected higher operating expenses.
Revenues, adjusted earnings, adjusted earnings per share and free cash flow were all “decisively higher than expected,” with the growth occurring across a number of service offerings and regions, CEO and Chairman Bradley Jacobs said.
“We had a remarkably good quarter,” Jacobs said Friday in an earnings call with investment analysts. “It’s gratifying to know that our years of investment in business — especially in technology — have put us in a strong position to support our customers through the ups and downs of the recovery.”
Among the drivers of the growth, supply-chain outsourcing is accelerating, and e-commerce is a “huge tailwind,” especially in contract logistics and last-mile delivery services, Jacobs said.
Last-mile revenues increased 11 percent, boosted by the company’s North American hubs and XPO Direct network. In truck brokerage, revenues grew 27 percent.
Company officials also cited the impact of the firm’s XPO Connect technology, which all the company’s “nonasset” transportation services are using to manage their freight movements.
At the same time, the company has been gearing up for the holiday shopping season. Last month, it announced a plan to hire about 15,000 people across North America to respond to the holiday peak.
Those positions include permanent, seasonal, full-time, part-time, hourly and salaried roles in logistics, transportation and corporate operations. Distribution-center jobs — the largest part of the recruitment — represent about 8,000 of the openings across the U.S., with jobs available in Indiana, Pennsylvania, Maryland, California, Georgia and Tennessee. XPO aims to fill all those openings by Nov. 15.
“The retail peak has started earlier, with more holiday shopping expected to take place via e-commerce,” Chief Strategy Officer Matt Fassler said on the call. “Brick-and-mortar shopping is likely to be spread over a longer period of time as well, as consumers look to avoid crowds. Our supply chain and last-mile operations will be the biggest beneficiaries.”
XPO, the No. 196 firm on this year’s Fortune list, is headquartered at 5 American Lane in Greenwich. It employs about 50,000 in the U.S., accounting for about half of its global workforce.