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Interesting article on XPO

OntarioVanMan

OntarioVanMan

Retired Expediter
Owner/Operator
I have always said..I think you'll see the expedite division get spun off and sold....Bradley really isn't interested in expedite...IMO
 
davekc

davekc

Senior Moderator
Staff member
Fleet Owner
Certainly starting to look like it. Most of the people that used to be there I believe have left.
I guess it is "squeeze the remaining".
 
letzrockexpress

letzrockexpress

Veteran Expediter
I think it was blatently clear that when the company went from being called Express-1 to being known only by it's stock symbol, (XPO), We could see the writing on the wall. It's 100% about the money and Express-1 Expedited Solutions doesn't matter to them.
 
layoutshooter

layoutshooter

Veteran Expediter
Retired Expediter
letzrockexpress said:
I think it was blatently clear that when the company went from being called Express-1 to being known only by it's stock symbol, (XPO), We could see the writing on the wall. It's 100% about the money and Express-1 Expedited Solutions doesn't matter to them.
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Well, of COURSE it is 100% about the money. They are not in business to get paid in horse manure.
 
Ragman

Ragman

Veteran Expediter
Retired Expediter
layoutshooter said:
Well, of COURSE it is 100% about the money. They are not in business to get paid in horse manure.
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inaugural-horse-manure-recycled.jpeg
 
Slo-Ride

Slo-Ride

Veteran Expediter
Granted we all know Im not a banker or even close to understanding alot of things..But with this kinda of revenue and it looks like it maybe the second highest on their list, What makes ya think they way move away from it?? 26 Million for 1 Q is nothing to sneeze at in my book.. If I read it right it looked to me like only one other division out paced the expedite side..


The company’s expedited transportation business generated total revenue of $26.4 million for the quarter, a 2.8% increase from the same period in 2012. Gross margin percentage was 15.9% for the quarter, compared with 20.0% for the same period in 2012. The decrease in gross margin percentage primarily reflects a soft expedite environment, as well as the addition of revenue from air charter, which generates lower margins than the company’s over-the-road expedited business. Second quarter operating income was $1.2 million, compared with $2.6 million a year ago, primarily reflecting the impact of a lower gross margin percentage.
 
davekc

davekc

Senior Moderator
Staff member
Fleet Owner
Cutting their contractors pay only offers them a slight bump until those people leave. Many of them have. Hard to grow that side when you are the cheapest in town. But that aside, it is where they are making their investments. Seem to be 3PL's as of late. Outside of expediting their losses are high (drop at $1.00 diluted share) but some of that is due to those acquisitions and start up places. Interesting to watch none the less.
 
Slo-Ride

Slo-Ride

Veteran Expediter
davekc said:
Cutting their contractors pay only offers them a slight bump until those people leave. Many of them have. Hard to grow that side when you are the cheapest in town. But that aside, it is where they are making their investments. Seem to be 3PL's as of late. Outside of expediting their losses are high (drop at $1.00 diluted share) but some of that is due to those acquisitions and start up places. Interesting to watch none the less.
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Im thinking they kinda did something like Transforce did by gobbling up what they could when the market was down..Even thier own stock was way low but they spent and are in good shape now up there. Missed the boat on Transforce stock just a few years ago. Had a freind tell me to buy with him and I didnt.. Think they where below a dollar for a bit but dont qoute me on that..
 
T

Tomtom

Active Expediter
Not sure why you would think they are moving away from expedite. Seem to be only buying business that support the model. They could have bought a ton of TL brokers if that was the case.
 
OntarioVanMan

OntarioVanMan

Retired Expediter
Owner/Operator
Tomtom said:
Not sure why you would think they are moving away from expedite. Seem to be only buying business that support the model. They could have bought a ton of TL brokers if that was the case.
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They have.... All these hundreds they've hired have all been for the brokerage not for expedite.
 
westmicher

westmicher

Veteran Expediter
Tomtom said:
Not sure why you would think they are moving away from expedite. Seem to be only buying business that support the model. They could have bought a ton of TL brokers if that was the case.
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I was in Buchanan 3 month ago and it was a ghost town compared to two years ago. All the proof I need!!!
 
BigBadBill

BigBadBill

Active Expediter
OntarioVanMan said:
They have.... All these hundreds they've hired have all been for the brokerage not for expedite.
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That is where the return is.

westmicher said:
I was in Buchanan 3 month ago and it was a ghost town compared to two years ago. All the proof I need!!!
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Don't confuse bad business making decisions with intentions. Also, aren't they shifting operations? That was what I was told last summer but have had no update on if this is happening or scrapped.

We do a fair amount of business with XPO. What they are truly intending I will leave up to all of you to speculate. What I can say is they are one of the better companies to work with.
 
OntarioVanMan

OntarioVanMan

Retired Expediter
Owner/Operator
They have offices in a few more places now...yes....BUT they've lost a few really great customers.....and by lowering driver rates have artificially made themselves look better on paper...
and maybe for you at your level...but down at the owner operator level...E-1 is nothing but trailer trash.....
 
BillChaffey

BillChaffey

Veteran Expediter
Owner/Operator
US Navy
"Owner-operators need not to worry, either, that Express-1's growth strategy will include cutting rates in order to build market share" former Express 1 CEO Mike Welch from volume 8 issue 5 Expedite Now magazine.
 
davekc

davekc

Senior Moderator
Staff member
Fleet Owner
BigBadBill said:
That is where the return is.



Don't confuse bad business making decisions with intentions. Also, aren't they shifting operations? That was what I was told last summer but have had no update on if this is happening or scrapped.

We do a fair amount of business with XPO. What they are truly intending I will leave up to all of you to speculate. What I can say is they are one of the better companies to work with.
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Since they cut their drivers rates, are you saying they are smiling while picking your pocket?

As far as anything else, I go with the "watch what they do, not what they say".
 
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BigBadBill

BigBadBill

Active Expediter
davekc said:
Since they cut their drivers rates, are you saying they are smiling while picking your pocket?

As far as anything else, I go with the "watch what they do, not what they say".
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What is humorous about this is that it seems that everyone is willing to hammer other carriers for their actions. But when they get battered around, lied to and cheated by their carrier they sit around an make all kinds of excuses.

It seems sad but the general sentiment is that you are going to get abused by everyone so find the person that abuses you the least.

I am sure some Sociologist would have a field day studying how drivers and fleet owners justify the treatment they get from their carriers and do nothing about it.
 
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