On Thursday, prior to market opening, XPO announced third-quarter results that surpassed expectations. Enhanced efficiency measures and improved yields drove an increase in operating income for the company’s less-than-truckload division, located in Greenwich, Connecticut. XPO (NYSE: XPO) posted adjusted earnings per share of $1.07 for the quarter, exceeding both consensus estimates and last year’s figures by 5 cents. This adjusted EPS number omits transaction and restructuring costs, along with a previously noted $35 million charge related to environmental and product liability claims from Con-way, a truck manufacturing subsidiary acquired by XPO in 2015. Consolidated revenue saw a 3% year-over-year increase, reaching $2.11 billion, which was above the $2.07 billion consensus forecast. In terms of performance, less-than-truckload revenue slightly rose year-over-year to $1.26 billion, as a 6% drop in tonnage per day was offset by a 6% rise in revenue per hundredweight, indicating improved yield. The decline in tonnage was attributed to a 3.5% decrease in daily shipments and a 2.7% reduction in shipment weight, even as comparisons to the previous year have softened. However, the company is refining its freight mix, contributing to higher yields, which were up 12.6% on a two-year stacked basis. Support for the yield metric was found in a 1.3% increase in length of haul and reduced shipment weights. The LTL unit recorded an adjusted operating ratio of 82.7%, reflecting a 150 basis point improvement year-over-year and a 20 basis point enhancement compared to the prior quarter. This result exceeded management’s guidance, which anticipated no significant sequential change. Typically, XPO experiences a 200 to 250 basis point decline in operating ratio from the second to third quarter. “Our rigorous execution is yielding record service quality and margin expansion at a challenging point in the cycle,” stated CEO Mario Harik in a press release. “We are just beginning to tap into our long-term margin potentials and anticipate performance will accelerate as our strategy gains momentum.” The European transportation segment reported a 7% year-over-year revenue increase to $857 million, although it recorded an operating loss of $2 million, reflecting an $8 million year-on-year shift. Adjusted EBITDA decreased by 14% year-over-year, totaling $38 million. XPO plans to hold a conference call to discuss the third-quarter results on Thursday at 8:30 a.m. EDT.