XPO Provides North American LTL Operating Data for May 2024
XPO (NYSE: XPO), a top freight transportation provider in North America, released preliminary operating metrics for its LTL segment for May 2024. The company saw a 2.4% increase in LTL tonnage per day compared to May 2023, driven by a 3.8% rise in shipments per day and a 1.4% decrease in weight per shipment. CEO Mario Harik highlighted that XPO continues to gain profitable market share despite a soft freight market, with improved service quality contributing to consistent yield growth. He noted that the second quarter's yield, excluding fuel, is showing sequential improvement from the first quarter. The company also reported improved damage frequency and emphasized its commitment to enhancing service quality and near-term profitability, while preparing for a potential rebound in industry demand.
- LTL tonnage per day increased by 2.4% in May 2024 compared to May 2023.
- Shipments per day rose by 3.8% year-over-year.
- Consistent above-market yield growth reported.
- Fourteenth consecutive month of positive shipments per day performance.
- Second quarter yield ex-fuel tracking to sequential improvement from the first quarter.
- Improved damage frequency in May 2024.
- Weight per shipment decreased by 1.4% year-over-year.
- The freight market remains soft, indicating broader industry challenges.
Insights
XPO's recent announcement on its LTL (Less-Than-Truckload) operating metrics for May 2024 offers a mixed bag of insights for retail investors. The most notable data points include a
From a financial perspective, the increase in shipments is positive, indicating robust demand and operational efficiency. However, the decrease in weight per shipment could signal a shift towards lighter goods, which might yield lower revenue per shipment. Investors should weigh if this change aligns with broader industry trends or if it's a sign of changing customer profiles.
The CEO's comment on yield improvement ex-fuel is reassuring, suggesting that the company is navigating fuel price volatility effectively and potentially improving profitability. However, it's important to note that these results are preliminary and actual figures might differ.
In the transportation and logistics sector, service quality and reliability are paramount. XPO's claim of improved damage frequency and consistent above-market yield growth is a positive sign for both existing and potential customers. The company’s ability to maintain service standards despite a soft freight market is commendable and could attract more business when the market condition improves.
However, the soft market conditions mentioned by the CEO indicate external economic pressures. Investors should consider broader economic indicators and trends in the freight industry, as these factors can significantly impact XPO's performance in the coming months.
Notably, XPO's 14-month streak of positive performance in shipments per day suggests a resilient business model and effective strategic initiatives, which may bode well for long-term growth.
GREENWICH, Conn., June 06, 2024 (GLOBE NEWSWIRE) -- XPO (NYSE: XPO), a leading provider of freight transportation in North America, today reported certain preliminary LTL segment operating metrics for May 2024. LTL tonnage per day increased
Mario Harik, chief executive officer of XPO, said, “We’re continuing to take profitable share in a soft freight market, with improved service quality driving consistent above-market yield growth. Through May, our second quarter yield ex-fuel is tracking to a sequential improvement from the first quarter.”
Harik continued, “Providing world class service to our customers is a cornerstone of our growth strategy. We improved damage frequency again in May, while delivering a
About XPO
XPO, Inc. (NYSE: XPO) is a leader in asset-based less-than-truckload (LTL) freight transportation in North America. The company’s customer-focused organization efficiently moves 18 billion pounds of freight per year, enabled by its proprietary technology. XPO serves approximately 52,000 customers with 610 locations and 39,000 employees in North America and Europe, with headquarters in Greenwich, Conn., USA. Visit xpo.com for more information, and connect with XPO on LinkedIn, Facebook, X, Instagram and YouTube.
Forward-looking Statements
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” “trajectory” or the negative of these terms or other comparable terms. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances.
These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include the risks discussed in our filings with the SEC, and the following: the effects of business, economic, political, legal, and regulatory impacts or conflicts upon our operations; supply chain disruptions and shortages, strains on production or extraction of raw materials, cost inflation and labor and equipment shortages; our ability to align our investments in capital assets, including equipment, service centers, and warehouses to our customers’ demands; our ability to implement our cost and revenue initiatives; the effectiveness of our action plan, and other management actions, to improve our North American LTL business; our ability to benefit from a sale, spin-off or other divestiture of one or more business units or to successfully integrate and realize anticipated synergies, cost savings and profit opportunities from acquired companies; goodwill impairment; issues related to compliance with data protection laws, competition laws, and intellectual property laws; fluctuations in currency exchange rates, fuel prices and fuel surcharges; the expected benefits of the spin-offs of GXO Logistics, Inc. and RXO, Inc.; our ability to develop and implement suitable information technology systems; the impact of potential cyber-attacks and information technology or data security breaches or failures; our indebtedness; our ability to raise debt and equity capital; fluctuations in interest rates; seasonal fluctuations; our ability to maintain positive relationships with our network of third-party transportation providers; our ability to attract and retain key employees including qualified drivers; labor matters; litigation; and competition and pricing pressures. We caution that our operating results for May 2024 are not necessarily indicative of the results that may be expected for future periods.
All forward-looking statements set forth in this release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this release speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements except to the extent required by law.
Investor Contact
Brian Scasserra
+1-617-607-6429
brian.scasserra@xpo.com
Media Contact
Jaycie Cooper
+1-475-400-5003
jaycie.cooper@xpo.com
FAQ
What was the LTL tonnage per day growth for XPO in May 2024?
How did XPO's shipments per day perform in May 2024?
What was the change in weight per shipment for XPO in May 2024?
How is XPO's second quarter yield excluding fuel tracking?
What improvements did XPO report in May 2024 besides tonnage growth?
How many consecutive months has XPO seen positive shipment performance?
