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WHO KNOWS105

WHO KNOWS105

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XPO won't be EPS positive in the fourth quarter. It will be close, but no cigar. The first quarter is historically their worst, and XPO will have some one-time costs in Q4 but more in Q1. Therefore, Q1 won't be EPS positive either. However, Q2 and onwards will be very profitable, and XPO will be EPS positive in 2016.
 
How often do contracts get re-bid, if they did indeed lose the 2 billion contract, what is there strategy to protect the other contracts they currently have when they come up for bid again. Referring to XPO Menlo Loses $2B DTCI/DFTS Contract to Genco (Fed Ex)Genco surprisingly won this contract over incumbent Menlo/XPO -- This was a government contract, no where near that size. Not that interesting to us. Menlo did not even have $2 billion in revenue, and this is not even a top 10 contract. Maybe $100 million.

Yes, FedEx did win this government contract, but it is not as significant as investors initially thought.

The average contract length is five years.
 
Rewarding terminals that actually make a profit more than the ones that don't, currently it doesn't matter, all terminals are paid the same in bonus, called VVP. -- YES. Prior company had no PNL for branch terminals. Had no idea how profitable they were. They took it away 7-8 years ago and we have no idea why. By the end of January every service center will have PNL and compensation based on performance.

The Plans that Con-Way had in their budget for 2016 for yard and terminal expansion, are those still in effect? --- Everything is being changed. New handheld software is accelerating, new programs being launched. The things that Con-Way planned for 2016 are not in effect.
 
Why can't employee's buy XPO stock through 401K? :violin::wtflol:We want our employees to be paid for what they do. I want our employees to view XPO as a business, not as a stock. In past businesses, we tried using stock for compensation, but quickly noticed Yahoo! Finance on computer screens and not actual work. Stock distorts where there head is. We want employees to see XPO as people, trucks, customers, and not a price.

XPO management is feeling a lot of pressure to include stock in the 401K plan. They even admitted it could happen near-term. This is interesting because it could create a lot of buying pressure in the stock.
 
WHO KNOWS105 said:
How often do contracts get re-bid, if they did indeed lose the 2 billion contract, what is there strategy to protect the other contracts they currently have when they come up for bid again. Referring to XPO Menlo Loses $2B DTCI/DFTS Contract to Genco (Fed Ex)Genco surprisingly won this contract over incumbent Menlo/XPO -- This was a government contract, no where near that size. Not that interesting to us. Menlo did not even have $2 billion in revenue, and this is not even a top 10 contract. Maybe $100 million.

Yes, FedEx did win this government contract, but it is not as significant as investors initially thought.

The average contract length is five years.
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If it's the post office deliveries they blow anyway.
 
Amazon has been talking about creating its own fleet of trucks and planes. It is also

talking about selling the excess capacity to other companies. How big of a customer is Amazon for XPO? I guess it's a matter of time that we will lose them as a customer.-- In the past, someone would buy a washer or TV from Amazon and AMZN would call Whirlpool and tell them to take care of it. AMZN does not want to do that. AMZN wants to have its own inventory and take the orders, but that is expensive with UPS. We are enabling AMZN to move away from UPS. If you buy a TV on Amazon, it is coming from XPO. The same applies to all large consumer items, like fridge, washer, dryer, etc.

We are doing last mile for AMZN and it is very important for us. Amazon does not like us talking about our relationship with them, but I will say that AMZN was the 25th biggest customer last year, moving towards top now. We are doing well with AMZN.
 
WHO KNOWS105 said:
Amazon has been talking about creating its own fleet of trucks and planes. It is also

talking about selling the excess capacity to other companies. How big of a customer is Amazon for XPO? I guess it's a matter of time that we will lose them as a customer.-- In the past, someone would buy a washer or TV from Amazon and AMZN would call Whirlpool and tell them to take care of it. AMZN does not want to do that. AMZN wants to have its own inventory and take the orders, but that is expensive with UPS. We are enabling AMZN to move away from UPS. If you buy a TV on Amazon, it is coming from XPO. The same applies to all large consumer items, like fridge, washer, dryer, etc.

We are doing last mile for AMZN and it is very important for us. Amazon does not like us talking about our relationship with them, but I will say that AMZN was the 25th biggest customer last year, moving towards top now. We are doing well with AMZN.
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Hey WK, are these questions and answers a transcript from one of Mr. Jacobs' town hall meetings or are they from some other source or just your analysis from your own research? Just curious.
 
Serene Gene said:
+1 I'd like to see the source material, too.
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The United States Transportation Command announced the award of the $2.2 billion Defense Freight Transportation Services (DFTS) contract to GENCO Infrastructure Solutions of Pittsburgh, PA on Wednesday, December 30, 2015. The DFTS contract includes requirements for transportation management for Department of Defense facilities in the continental United States through the end of 2017. As the contract is implemented at facilities and with vendors, the predecessor contract to DFTS, the Defense Transportation Coordination Initiative (DTCI) will be wound down. The DTCI contract was previously awarded to Menlo Global Logistics in 2007. GENCO Infrastructure Solutions previously held contracts with the Department of Defense to support the U.S. Navy’s presence in Bahrain and the CENTCOM Theater.

Says was previously awarded to Menlo....
 
runningfor48 said:
The United States Transportation Command announced the award of the $2.2 billion Defense Freight Transportation Services (DFTS) contract to GENCO Infrastructure Solutions of Pittsburgh, PA on Wednesday, December 30, 2015. The DFTS contract includes requirements for transportation management for Department of Defense facilities in the continental United States through the end of 2017. As the contract is implemented at facilities and with vendors, the predecessor contract to DFTS, the Defense Transportation Coordination Initiative (DTCI) will be wound down. The DTCI contract was previously awarded to Menlo Global Logistics in 2007. GENCO Infrastructure Solutions previously held contracts with the Department of Defense to support the U.S. Navy’s presence in Bahrain and the CENTCOM Theater.

Says was previously awarded to Menlo....
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Two year contracts, if Menlo was previous awarded this it looks like they held it for the last four contracts. $2.2 bil is nothing to sneeze at, a big loss for sure.
 
I don't see any profits coming anytime soon, just more losses. Large debt to service, 80,000 employees to keep happy, large investors sitting on 100's of millions of losses, hedge funds shorting the common stock, Pacer lawsuits, little to no synergies to capitalize on with these diverse operations owned. Yes Jacobs did a great job with his previous Roll ups of trash companies and bobcat rental companies but he doesn't seem to have a clue with his latest choice of industries he has chosen to work with. I haven't read on here in the last 3 months since his purchase that Conway drivers are bumping many new docks or have been carrying any Norbert Dresstangle freight like everybody seemed to think might happen.
 
pancake said:
I don't see any profits coming anytime soon, just more losses. Large debt to service, 80,000 employees to keep happy, large investors sitting on 100's of millions of losses, hedge funds shorting the common stock, Pacer lawsuits, little to no synergies to capitalize on with these diverse operations owned. Yes Jacobs did a great job with his previous Roll ups of trash companies and bobcat rental companies but he doesn't seem to have a clue with his latest choice of industries he has chosen to work with. I haven't read on here in the last 3 months since his purchase that Conway drivers are bumping many new docks or have been carrying any Norbert Dresstangle freight like everybody seemed to think might happen.
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It has been stated publicly that XPO should be profitable this year , 2016.
 
pancake said:
I don't see any profits coming anytime soon, just more losses. Large debt to service, 80,000 employees to keep happy, large investors sitting on 100's of millions of losses, hedge funds shorting the common stock, Pacer lawsuits, little to no synergies to capitalize on with these diverse operations owned. Yes Jacobs did a great job with his previous Roll ups of trash companies and bobcat rental companies but he doesn't seem to have a clue with his latest choice of industries he has chosen to work with. I haven't read on here in the last 3 months since his purchase that Conway drivers are bumping many new docks or have been carrying any Norbert Dresstangle freight like everybody seemed to think might happen.
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You just described the Yellow/Roadway merger to a T!!
 
pancake said:
I don't see any profits coming anytime soon, just more losses. Large debt to service, 80,000 employees to keep happy, large investors sitting on 100's of millions of losses, hedge funds shorting the common stock, Pacer lawsuits, little to no synergies to capitalize on with these diverse operations owned. Yes Jacobs did a great job with his previous Roll ups of trash companies and bobcat rental companies but he doesn't seem to have a clue with his latest choice of industries he has chosen to work with. I haven't read on here in the last 3 months since his purchase that Conway drivers are bumping many new docks or have been carrying any Norbert Dresstangle freight like everybody seemed to think might happen.
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I think that he's in deep for sure...of that there is little doubt. Things seem not to be going as he planned right now. However, I still think that his head is above water. I think that the consolidation of his recent acquisitions is taxing for him to say the very least. Just getting his global sales team all on the right page w/ the cross selling is challenging and time consuming. Meeting w/ Tony Brooks and getting the LTL strategy ironed out is also not that easy. Remember he said somewhere that it would take some time , two years I think was the number, before this company is firing on all cylinders.
 
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