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 (6 segments)
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Jim Cramer0:00
Okay, so sorry, you had a magnificent quarter, strong first quarter as an independent company. 25% top line, 100% earnings per share growth. Can you tell us how you were able to have such magnificent growth?
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Richard Cawston0:13
You know, Jim, it's about doing what we've been doing with all of our big blue chip customers. We've been giving a great service, super reliable services to everybody, even in the current environment that's so important. Delivering for our customers a great peak season, which is right upon us now, and the most pleasing thing that I've seen in the last months is we've signed over a billion dollars of new business. That's coming on top of existing new business, $4 billion year to date. That's setting us up for a great 2022.
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Jim Cramer0:45
Well, what's the... Yeah, can you give me a sense of what the aggregate lifetime value of a new customer contract would mean?
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Richard Cawston0:52
It can be anything ranging from a hundred thousand dollars up to multiple tens of millions of dollars. In fact, our largest whale size of contract over a billion dollars, and the average term of our contract is around five years. That gives us great runway of visibility for our future business, and that's why, you know, we can look forward into 2022 so positively.
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Jim Cramer1:15
All right, now a lot of companies are telling us be careful, supply chain issues. There's a ton of retailers. This is, we're very close to the holiday season, and Abercrombie, Gucci, H&M, Zara, Saks. These are all blue chip companies for you. How are you feeling about the holidays for these companies?
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Richard Cawston1:35
Well, we've been working so closely with all of our customers. We've been planning with them for months and months. In that process, you know, deploying more and more automation across our warehouses in North America. We've been recruiting 10,000 new GXO employees, and the great thing is a lot of those employees are going to stay with us through into 2022. They're going to be helping us establish all the implementations for those new businesses that we've been talking about. But for sure, a lot of disruption, a lot of cargo now flowing into the warehouses, and that's right in our wheelhouse. We're going to turn that cargo, those products, around quickly, get them to the consumer.
