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GREENWICH, CT: August 04, 2017. XPO Logistics has reported a net income of US$73.2 million on revenue of US$7.3 billion for the first six months of 2017. Figures for the same period last year were US$24.1 million and US$7.23 billion respectively.

For the second quarter ending June 30, net income was US$51.9 million on revenue of US$3.76 billion.

XPO MAChairman and CEO Bradley Jacobs said the company planned to expand its last mile network with 10 new hubs by the end of the year and have 55 across the U.S. at the beginning of 2018.

"Our plan is to grow that [number] to 85 hubs by the end of 2018. We're doing that so that we'll get close to the customer and reduce transit times. And with this network, we'll be within 100-some-odd miles of 90 percent of the entire U.S. population."

Asked about future M&A activity with the "winding down" of the Norbert Dentressangle and Conway integrations, Jacobs said XPO was going to pursue the M&A market and could pay "up to US$7 billion or US$8 billion for an acquisition without raising more equity and without going over five times EBITDA on the leverage."

Jacobs acknowledged he didn't expect "bigger deals soon because we're just starting conversations and these things take time", but admitted the company is discussing smaller acquisitions with a purchase price "in the hundreds and millions of dollars, not in the billions of dollars" with a primary focus on Western Europe and North America.

"M&A takes a lot of effort, there's a lot of time that goes into it. It puts stress on the organization. There is risk involved in it, that's all fine as long as there is a big return from that," he continued. "So we are not interested in doing a deal or deals that are dilutive to earnings or free cash flow. That's not going to get us a gold star."

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