XPO Logistics revenue doubles due to higher freight demand
* Fourth-quarter rev jumps 137 pct to $257.2 mln
* Freight forwarding rev triples to $215.2 mln
* Expects revenue of at least $2.75 bln in 2014
* Expects about $400 mln in 2014 rev from acquisitions
By Sagarika Jaisinghani
Feb 24 (Reuters) - XPO Logistics Inc's quarterly revenue more than doubled as it placed more freight with other carriers and shipped a higher number of quick delivery packages.
The company, which is aiming to be a one-stop shop in logistics through acquisitions, said revenue from its freight brokerage business, its largest, more than tripled to $215.2 million in the fourth quarter.
Revenue from XPO's expedited transportation, or quick delivery, division rose 19.4 percent to $26.4 million in the quarter ended Dec. 31.
"Shippers are looking outside of their traditional vendors and that creates opportunity for us at XPO to bid on more freight," Chief Executive Bradley Jacobs told Reuters.
The company has been on an acquisition spree as it looks to offer across-the-board services such as truckload, less-than-truckload, quick delivery, freight forwarding and intermodal, which moves goods using multiple modes of transport.
XPO said in January it would buy Pacer International Inc to become the third-largest North American provider of intermodal services.
Jacobs said on Monday XPO was in takeover talks and could sign about four more deals in 2014.
"We have active discussions going on with literally a dozen acquisition opportunities," he said.
The company said it expects 2014 revenue of at least $2.75 billion, $400 million of which would come from acquisitions.
Analysts on average were expecting revenue of $1.50 billion for 2014, according to Thomson Reuters I/B/E/S.
XPO's revenue more than doubled to $257.2 million in the fourth quarter but fell short of the $264.3 million analysts had expected.
Net loss available to common shareholders widened to $11.3 million from $10.1 million a year earlier.
However, net loss per share shrank to 37 cents, compared with 57 cents a year earlier, due to a larger number of shares outstanding in the latest quarter.
Jacobs said earnings before interest, taxes, depreciation and amortization included an interest expense of about $10 million associated with the conversion of some notes into common shares.
Analysts expected a loss of 30 cents per share.
XPO shares closed at $27.69 on the New York Stock Exchange on Monday. They have gained about 61 percent in the past 12 months, far outperforming the 22 percent rise in the S&P 500 index.
- Deadly gun attack in eastern Ukraine shakes fragile Geneva accord |
- Japan expands army footprint for first time in 40 years, risks angering China
- Pfizer considers $100 billion bid for AstraZeneca: report
- Prosecutors extend Korea ferry captain's detention as death toll mounts |
- Rubin 'Hurricane' Carter, U.S. boxer famous in folk song, dies at 76