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Digesting and integrating its now-finalized $3 billion acquisition of Con-way Inc. and its subsidiaries, along with growing revenues, margins, and slicing costs will occupy the management team at XPO Logistics for the foreseeable future, noted Bradley "Brad" Jacobs, the company's chairman and CEO, in global firm's third quarter conference call.
"This is pure meat and potatoes execution; Sales, sales, sales plus efficiency at every level," Jacobs explained to reporters on the call. "We're jumping in like our hair is on fire. Our focus now it to make it all hum as one coherent global organization. Acquisition is not our focus."
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He noted that XPO has already cut $30 million of excess costs on an annualized basis from the former Con-way's structure through headcount reductions and vendor contract re-negotiations and believes that effort indicates XPO remains "on target" to save between $170 million and $200 million in costs over the next two years from its Con-way acquisition.
"We're not impervious to the economy; we certainly depend on GDP [gross domestic product] growth, industrial manufacturing growth, and retail sales," he said. "We're very much part of the global economy - no question about that."
But there are "many things" XPO is doing now and planning to...