served as financial advisor to XPO for the transaction, and Wachtell, Lipton, Rosen & Katz served as legal advisor. XPO will update its guidance to reflect the divestiture when the company reports its first quarter 2022 financial results. We’ve completed a key step in preparing for our planned spin-off, when we’ll separate XPO into two publicly traded leaders in less-than-truckload transportation and tech-enabled brokered transportation services.” The divested operations provide rail brokerage and drayage services 48 locations and approximately 700 employees have transferred to the buyer in the transaction.īrad Jacobs, chairman and chief executive officer of XPO Logistics, said, “This divestiture simplifies our business model and moves our capital structure closer to investment-grade - two priorities in our strategic plan to unlock significantly more value for our stakeholders. The intermodal unit, which XPO has reported as part of its Brokerage and Other Services segment, generated $1.2 billion of revenue in 2021. for cash proceeds of approximately $710 million, subject to a customary post-closing purchase price adjustment. (NYSE: XPO) today announced that it has divested its North American intermodal business to STG Logistics, Inc. 3 on the TT Top 100 list of the largest for-hire carriers.$710 million divestiture advances XPO’s strategic plan to create two pure-play, publicly traded companies through a spin-off later this year 6 on the Transport Topics Top 100 list of the largest logistics companies in North America and No. That included a $64 million noncash goodwill impairment charge related to a change in segment structure after the RXO spinoff. The segment also saw an operating loss of $60 million, compared with an operating loss of $3 million for the same period in 2021. The decrease was due to unfavorable foreign currency exchange. Operating income for the segment increased 25.5% to $172 million from $137 million.Įuropean transportation revenue decreased 3.6% to $738 million from $766 million during the prior-year period. This was driven by a strategic change in channel mix and an increase in tonnage that helped yields improve 1.4% year-over-year. North American less-than-truckload revenue in Q4 increased 7.9% to $1.09 billion from $1.01 billion for the same period in 2021. RXO CEO Drew Wilkerson outlines the road ahead for the tech-enabled truckload broker as an independent company with $RXO completed its spin-off from $XPO this week We are incredibly excited about the investments we’re making, the progress we’re making in service.” “So, it’s been a great freight year, and we’re looking forward to positioning ourselves post-RXO spin, now with a stand-alone LTL company here in North America with a ton of momentum. “We delivered more than a billion dollars of EBITDA in our LTL business,” Harik said. That measure grew on an adjusted basis 38% in the quarter to $262 million from $190 million for the same period in 2021. Some of the things, obviously, we’re very proud of, we did improve margins across our LTL business for the full year.”Įarnings before interest, taxes, depreciation and amortization (EBITDA) was another focus. “2022 has been a great year in every metric in terms of revenue growth, earnings growth, profits growth and free cash flow growth as well,” Harik said. 5cZG84Yscpįor the full year, XPO reported net income of $666 million, or $5.76 a share, on revenue of $7.72 billion, compared with net income of $341 million, or $2.93 a share, on revenue of $7.2 billion in 2021. Thanks to all XPO employees for their great work. They’re giving us more business for the ones who are existing customers, and we are able to onboard a lot of new customers as well to our network.”Ī strong Q4 for XPO with solid revenue, year-over-year increases in profitability and volume growth. “The second area we focused on was significant improvements in the quality of our service, and our service quality in the fourth quarter was the best it’s been in six years and our customers are rewarding us. “These investments in capacity enabled us to capture more demand from our customers,” Harik said. XPO expanded its linehaul fleet by more than 10% through the course of 2022. That includes the company building its own trailers, growing its workforce and adding six new terminals over the last year. Harik attributed the company growth amid a softening freight environment to expanding capacity, service improvements and technology investments. “So, when you look at the LTL industry, there was softer freight demand given the softer macro, and we were able to grow tonnage and gain market share in that environment.” “Another thing that I’m very proud of is the fact that we grew tonnage in a macroenvironment where the entire industry’s tonnage was down,” Harik said.
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