-Expedited transportation with revenue at $25.1 million for a 5.7 percent annual gain, and gross margin at 18.1 percent, compared to 16.6 percent last year, which XPO said was due to lower direct expenses that were partially offset by the addition of expedite air charter revenue from its acquisition earlier this year of East Coast Air Charter. Quarterly operating income was $1.7 million, which saw a 22.9 percent annual gain due to an increase in gross margin; and
-Freight forwarding, which XPO has rebranded as XPO Global Logistics, had $19.1 million in total revenue for a 10.5 percent annual increase, due mainly to growth in growth in freight forwarding cold starts and increased international shipment volume. Gross margin percentage for this segment was 13.8 percent compared to 11.1 percent last year and was mostly due to branch conversions from independent ownership to company ownership. The operating loss for this segment was $2.6 million compared to last year’s $193,000.
Even though some other truck brokerages and truck brokerage subsidiaries at other companies did not see strong third quarter results, Jacobs noted that was not the case for XPO as it has been outpacing the industry for gross margin improvement.