About Richard Cawston
Malcolm Wilson, CEO of GXO Logistics, discussed the company's performance and strategy in two CNBC "Mad Money" appearances. In September 2021, ahead of the spin-off from XPO Logistics, Wilson stated that the separation would allow GXO's management to be "laser focused on the customers" and make decisions tailored to the logistics sector. He described GXO as set to become "the second largest logistics company in the world."
In a September 2022 appearance, Wilson reported strong first-quarter results as an independent company, citing 25% top-line growth and 100% earnings per share growth. He said the company had signed over a billion dollars of new business on top of existing new business, setting it up for a "great 2022." Wilson noted that the average contract term is around five years, providing visibility for future business. Regarding the holiday season, he stated that GXO had been planning with customers for months, deploying more automation across North American warehouses, and recruiting 10,000 new employees, many of whom were expected to stay into 2022. He described cargo flowing into warehouses as "right in our wheelhouse."
Source: AI-verified profile updated from Richard Cawston's recent appearances.
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Transcript (8 segments)
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Jim Cramer0:01
Welcome back to 'Mad Money.'
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Malcolm Wilson0:04
Thanks for having me on the show, Jim.
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Jim Cramer0:06
Okay. So Malcolm, we need you to explain because we've been huge supporters when the stock was at the 20s but now we've got a business that we like and maybe it's even bigger than we think. What parts of XPO Logistics business are becoming GXO?
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Malcolm Wilson0:24
So XPO is going to spin off its logistics business as GXO and create two world class powerhouse companies. Transportation and XPO, LTL and logistics. That's the warehousing that will become GXO.
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Jim Cramer0:44
Now, why is it better to be separate? I mean, I would have thought that the two work together really well.
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Malcolm Wilson0:51
Jim, it's going to allow the management of the logistics portion of the company, GXO, they're going to be really laser focused on the customers. It's going to allow them to make decisions in terms of capital allocation, acquisition, everything will be tailored towards the logistics sector of the business. It's really going to be a very dynamic organization to our customers.
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Jim Cramer1:19
Malcolm, I know logistics, we've had Zebra on, Honeywell has got a logistics and the intelligence. I'm... Who do you really compete against? Those companies or just the giant warehouse companies?
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Malcolm Wilson1:35
Jim, GXO is going to be the second largest logistics company in the world. The reality is the reason it's a strong direct competitor that competes across all of the different markets that GXO is working in. Of course, there is going to be local competitors in country by country and maybe competitors that specialize in a particular vertical, maybe chemicals or ag business, but in terms of the breadth of GXO, there is going
