August 1, 2018 / 9:23 PM / a year ago

UPDATE 1-XPO CFO to step down, quarterly profit matches Wall Street view

(Adds CFO leaving, details on results)

By Lisa Baertlein

LOS ANGELES, Aug 1 (Reuters) - XPO Logistics, one of the largest global freight transportation and warehousing companies, on Wednesday said John Hardig will step down as chief financial officer on Aug. 15 and posted quarterly profit in line with Wall Street’s view.

Hardig, XPO’s first CFO, took the job in February 2012 and will remain as an adviser until Sept. 15. Sarah Glickman, senior vice president of corporate finance, will assume the role of acting CFO.

Shares in XPO, North America’s largest provider of “final-mile” deliveries of heavy goods such as Home Depot barbecue grills and Best Buy televisions from warehouses direct to homes, were flat at $99.92 in after-hours trading.

Greenwich, Connecticut-based XPO said strength in “final-mile” shipments and strong demand for e-commerce order fulfillment fueled the latest quarter’s profit rise.

Second-quarter net income attributable to common shareholders more than doubled to $137.5 million, or $1.03 per share.

Adjusted earnings were 98 cents per share, matching analysts estimates compiled by Thomson Reuters I/B/E/S, after it raised wages for employees such as warehouse and dock workers and truck drivers amid record U.S. unemployment and an overall shortage of truck drivers.

Revenue was up 16 percent year-over-year to $4.36 billion.

XPO, which is also the second-largest less-than-truckload operator that consolidates multiple loads on a single truck, said transportation revenue rose 14.5 percent to $2.89 billion during the quarter.

Freight brokerage services, which match trucks with goods for shipment, and North American “last-mile” deliveries led the segment gains.

XPO said it is on track to hit its goal of 85 last-mile hubs ahead of the holiday peak. That will position the company within 125 miles of 90 percent of U.S. consumers.

During the quarter, the company also launched XPO Connect, which allows truckers to bid for and book loads, and signed up 6,000 independent drivers and trucking companies.

Logistics revenue jumped 19 percent to $1.51 billion, on growing global demand for XPO’s service that fulfills e-commerce orders for companies in industries such as technology, food and beverage and apparel.

XPO added 37 new warehouses during the quarter. (Reporting by Lisa Baertlein in Los Angeles Editing by Chris Reese and Grant McCool)

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