XPO Logistics CEO Mario Harik said his team outpaced the industry during the fourth quarter by putting up less-than-truckload tonnage and shipment growth that helped the company grow adjusted net income to $113 million from $74 million in the same period of 2021.
XPO reported fourth-quarter revenue of $1.83 billion compared to $1.77 billion in the prior-year period, according to a press release. The company posted a net loss of $94 million during the period primarily because of $141 million in charges and other costs related to the spinoff of its brokerage business, which now trades as RXO. Its adjusted EBITDA margin rose to 14.3% from 10.8% a year earlier.
The company’s North American LTL segment generated revenue of $1.09 billion for the fourth quarter 2022, compared with $1.01 billion for the same period in 2021, and its operating income climbed 26% to $172 million. For the year, it topped $1 billion.
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“Yield came in at the low end of our outlook, reflecting a strategic change in channel mix that we believe will be a tailwind for both volume and yield as freight demand improves. In January, our tonnage was up year-over-year and trended better than typical seasonality,” Harik said in a statement. “We’re excited by the strong trajectory we’ve created, and the tangible ways we're strengthening our positioning. In LTL, our employee satisfaction was up sharply to the highest rating in more than a decade. In Europe, the business is continuing to perform above expectations. We’re confident that we’ll achieve our long-term LTL outlook and deliver superior shareholder value."
Full year 2022 financial results
For the full year 2022, the company reported total revenue of $7.7 billion, compared with $7.2 billion for 2021. Net income from continuing operations attributable to common shareholders was $184 million for 2022, compared with $96 million for 2021. Operating income was $377 million for 2022, compared with $312 million for 2021. Diluted earnings from continuing operations per share was $1.59 for 2022, compared with $0.83 for 2021.
Adjusted EBITDA for 2022 was $997 million, compared with $812 million for 2021. Adjusted net income from continuing operations attributable to common shareholders for the full year 2022 was $408 million, compared with $222 million for 2021. Adjusted EPS was $3.53 for 2022, compared with $1.94 for 2021.
