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XPO | XPO Logistics Announces Second Quarter 2016 Results

guitarman1 said:
Maybe we will get a nice raise and some benefits back...
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I think you're counting your chickens before they hatch. There was a meeting of all SCM's today of the Cincinnati district. Ain't heard anything yet, but let's say "I'm nervous".
 
That operating ratio is great. I can't remember when we operated that well its been so long. OD is the only ltl to operate better than we did. I was reading an article on the OD forum about how capacity should begin to tighten again soon. That will mean higher revenue for trucking companies and hopefully higher wages for us.
 
"Jacobs also said more than $300 million in potential profit improvements, including an additional $60 million to $100 million in LTL, were internal to the company and not dependent on economic conditions.

I wonder what he is talking about here. Seems like they've cut a lot of overhead like lean. How does he cut LTL by $100 million? I have to imagine things would change significantly.
 
Perma-bull said:
"Jacobs also said more than $300 million in potential profit improvements, including an additional $60 million to $100 million in LTL, were internal to the company and not dependent on economic conditions.

I wonder what he is talking about here. Seems like they've cut a lot of overhead like lean. How does he cut LTL by $100 million? I have to imagine things would change significantly.
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He cut $80 million in unneeded manager salary. He reduced unneeded spending. He used the bigger company to increase buying power. He's holding people accountable for spending.

Has anyone heard from the "XPO is a sinking ship!" crowd?
 
whip1 said:
He cut $80 million in unneeded manager salary. He reduced unneeded spending. He used the bigger company to increase buying power. He's holding people accountable for spending.

Has anyone heard from the "XPO is a sinking ship!" crowd?
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Do you have any sources on this? I am interested to read any info.
 
I don't have sources handy. The $80 million cuts was mentioned in meetings, on this forum, and I assume there are online articles.The other things are from meetings and observations. Last year if we asked for equipment, we got it. This year, all purchases are reviewed and often times denied.
 
whip1 said:
He cut $80 million in unneeded manager salary. He reduced unneeded spending. He used the bigger company to increase buying power. He's holding people accountable for spending.

Has anyone heard from the "XPO is a sinking ship!" crowd?
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Your o.r was great but don't expect that quarter after quarter. He cut a lot of fat away this time around, you can only cut so much....
 
upnorth said:
He hasn't even scratched the outer skin of this pork laden beast. Lots of fat and redundancy to trim.
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I understand what your saying, but you can't keep shrinking your way to profability. We all complain how things could be done better, but was Conway really that top heavy & wasteful?
 
ole man said:
I think you're counting your chickens before they hatch. There was a meeting of all SCM's today of the Cincinnati district. Ain't heard anything yet, but let's say "I'm nervous".
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There was more talk of the union going around. Allegedly.
 
radman said:
That operating ratio is great. I can't remember when we operated that well its been so long. OD is the only ltl to operate better than we did. I was reading an article on the OD forum about how capacity should begin to tighten again soon. That will mean higher revenue for trucking companies and hopefully higher wages for us.
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And it sure looks like the XPO LTL is trending towards operating more like OD. Which, if you consider scale, XPO should be able to outperform them.

Capacity will get tight as soon as the e-logs go into effect and Bubba can't run three books.

We might receive some standard sized wage increases. I wouldn't expect to much. But OD makes more than us around here. So there is room for something along those lines.
 
Perma-bull said:
"Jacobs also said more than $300 million in potential profit improvements, including an additional $60 million to $100 million in LTL, were internal to the company and not dependent on economic conditions.

I wonder what he is talking about here. Seems like they've cut a lot of overhead like lean. How does he cut LTL by $100 million? I have to imagine things would change significantly.
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Continue to better balance the lanes. Better utilize technology. Likely more cuts in management.

Example. We will be dispatching of the scanners soon. Still need to go in a punch off the hook. But eventually that will not be needed. Just paying attention to myself. This will save me 10-15 minutes a night walking back and forth. Times how ever many drivers. Massive amount of waste eliminated.

They can still close a few terminals. And there is a plenty of lanes that may be added or subtracted to allow them to better the lanes.
 
whip1 said:
He cut $80 million in unneeded manager salary. He reduced unneeded spending. He used the bigger company to increase buying power. He's holding people accountable for spending.

Has anyone heard from the "XPO is a sinking ship!" crowd?
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This ship won't sink. But it will get sold. It's what he does. If that bothers you. Okay, then.
 
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