Description: The article below mainly mentions the topic on xpo employee porta. It refers to the interview of the XPO Logistics CEO aiming at showing us some tips on helping business move with the rapidly growing provider of transportation and logistics services.
On a red-hot stock, it’s more room to run, consider the case of xpo logistics, the rapidly growing provider of transportation and logistics services with a stock, that’s been on fire up nearly 32% since we last spoke to the CEO, she liked one at the time, it seemed that XPO was finally getting some much-deserved appreciation from Wall Street after its stock, it’s been over a year lost in the wilderness.
Now that judgment seems more true than ever, I like this story, because xpo is a consolidator in the fast-growing, but fragmented logistics industry a little over a year ago, the company bought Conway a trucking firm for three billion dollars that deal came after xpo acquired Norbert d’entre sangla.
The European transportation play for 3.5 billion in April of 2015 and now it seems that these transactions are paying off, we know XPO reported truly fabulous quarter in early August, Duchin Bank coordinate a dream quarter, I put that quote and it sent the stock surging 14% in a single session.
Then when the company reported again last Wednesday, XPO shut the lights out for the second time in a row copy deliver to juicing force and Ernie’s beat off a 37-cent basis.
Even though its revenues came in the tag light, it’s still 57 percent for the year, the guidance was fantastic, xpo races for your free cash flow forecast for 2016 and imagine also made some bread bowls comments for 2017 and 18 stock jump from 32 to 34.
The news today serves over 36 part of market white rally can xbo keep climbing, let’s take a closer look with Bradley Jacobs, the Chairman CEO of xpo logistics, learn more about his company’s doing where it’s headed.
Mr. Jacobs, welcome back to man money, good to see Brad, thank you, this was an amazing quarter, because you’ve done so much of what you said and then some of you buy calm way which a lot of people say that is too big, you immediately sell the part that you don’t necessarily fit in for a half a billion dollars, pay down some debt.
But this has made you the second largest less than truckload provider in North America, 99% of us have goods, you have become the brokerage firm and the delivery company that we’ve all been waiting to have, so that’s been the plan.
The plan has been to stake out positions in the fastest-growing parts of transportation and logistics and be either number one or close to number one, when we say last mile which is something that pervades a lot of your different documents.
We’re speaking about e-commerce, maybe for a bigger prize, bigger things, not for the little ones to fit on the back of a UPS truck exactly, so we’re the leader in last-mile logistics for heavy goods, like appliances, like home electronics for furniture, for home exercise equipment.
We’ll arrange more than a million deliveries a month of last mile logistics, how does it work with it? You’ve got this, I guess that was the hidden jewel of Conway, it worked, how does that dovetail with what you’ve got?
There were a few things, number one it was a contract logistics company which we’ve integrated with our existing contract logistics company brought some marquee customers, it also had a managed transportation business which we merged with ours and it also had a truck brokerage business which we also integrated with ours.
I know I’m not a political show, but you have a lot of doggy, there’s a lot of stuff about how great ensuring that Mexico is under one candidate, under President Trump, it’s arguable that traffic could be disrupted.
But under Clinton as business as usual, this Mexican franchises is gigantic and growing, the Mexico business for us is approaching a billion dollars, it’s an important franchise to us, it’s growing fast, we have multiple avenues of exposure to it in truck brokerage and intermodal and an expedite.
Clinton would be a better candidate for our business than Trump, but if Trump gets elected, how is Europe going? I still think you hit Europe at the absolute bottom, Europe is going very well, we’re in most of Europe, but we’re primarily in three countries, France, UK and Spain.
We have strong positions in both transportation and logistics, in those three countries and UK, particularly we have a big e-commerce presence and that’s booming brexit hurt you help, it didn’t affect what we’re doing, because we’re an e-commerce there.
We’re also in food and beverage and brags it, people eat and drink one of the things, it struck, but my wife came back from Europe, she said that the system of moving large goods, I’m talking about refrigerators and stoves and things that you would get at Costco.
XPO might get it to us, it isn’t developed at all, is this an opportunity for you? One of our big last mile clients here in the United States which happens to be European company that asked us to come over to Europe and do a pilot project for them which we have done.
It’s gone very well and we’re looking to transplant that to other customers in Europe, so it’s true, they’re not developed, but they still use mom-and-pop stores that can’t deliver things, they’re more developed in some things less developing other things last mile.
They’re less developed, so give me a sense of where we are in this country, because there are people who tell me that there’s a slowdown, we got that great employment number on Friday.
Some companies are doing so well, some companies aren’t, you’ve got the whole panoply where we depends on what part of the economy, so the industrial economy has been in a funk for almost two years.
If you assume the caterpillars in the comments, it’s bad and those are both good customers of ours, but they’re not as funky as they were even six months ago, there might be some little improvement from the bottom there.
The e-commerce part of the industry, the e-tailing part of the business is booming and I think this season between now and the end of the year is going to be very strong now, one thing about our company is our growth plan, it has lots of companies specific initiatives than an independent of the macro.
For example, procurement opportunities to take out costs by consolidating 10,000 vendors down to 2,000 vendors, you are in the sweet spot, you’ve done everything, you’ve promised certain things, they were very hard to do and you delivered above and beyond what you said you would do.
That’s Brad Jacob, CEO of XP logistics incredibly successful for their monies back into the brain Booya jim cramer here from there, see you in YouTube, click here to subscribe and get the jump with my exclusives with CEOs plus market news investing advice and a whole lot more.