XPO Logistics Inc. – Company Strategy & Performance Analysis

XPO Logistics Inc. (XPO) offers freight brokerage, expedited transportation, and freight forwarding services. The company primarily caters to the needs of clients in the retail, commercial, agribusinesses, aerospace, food and beverage, chemical manufacturing, life sciences, and government industries. The company operates its business through two divisions: Transportation and Logistics. The Logistics division provides supply chain, managed transportation, customized, and engineering solutions. Through the Transportation division the company offers transportation brokerage services. XPO operates across Europe, North America, and Asia.

MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading transport and logistics companies. The report details company operations in key geographies and offers a comprehensive analysis of each firm’s growth strategy and financial performance. The reports benchmark company performance via key indicators, including air freight revenue, sea freight revenue, air freight volume, sea freight volume, operating income, net income, and total revenue.

Key Highlights

The company reported revenue growth in 2016

The firm’s overall revenue rose by 91.8%, from US$7.6bn in 2015 to US$14.6bn in 2016. Growth can be attributed to the company’s acquisition of major logistics firms such as Con-way and ND. In addition, growth in the firm’s less-than-truckload and last mile business contributed.

The acquisition of ND, Con-way, BTT and UX and organic growth in the firm’s last mile business drove revenue

XPO’s transportation division offers freight brokerage, last mile, less-than-truckload, full-truckload and global forwarding services. The division’s revenue rose from US$4.9bn in 2015 to US$9.5bn in 2016, indicating an increase of 92.0%. This was primarily attributed the acquisition of ND, Con-way, BTT and UX, as well as organic growth in the firm’s last mile business.

The acquisition of ND, and Con-way enabled the firm to post robust revenue growth

XPO’s logistics division encompasses a range of contract logistics solutions, including customized and engineered solutions, as well as managed transportation services. XPO has 760 contract logistics facilities worldwide. Revenue increased from US$2.8bn in 2015 to US$5.3bn in 2016, indicating an increase of 92.3%. This was attributed to the acquisitions of ND and Con-way in 2015.

Scope

– Company Snapshot – Details key indicators and rankings of XPO in terms of revenue, air freight volume, ocean containers and total warehouse space.

– Company SWOT Analysis – Outlines XPO's strengths, weaknesses, and opportunities and threats facing the company.

– Growth Strategies – Provides an overview of XPO’s corporate goals and strategic initiatives and evaluates their outcomes.

– Company Performance and Competitive Landscape – Analyses the company’s performance by geographical segment and provides a peer comparison on parameters such as revenue and market share.

– Key Developments – Showcases XPO's recent corporate events and initiatives.

– ICT Spending Prediction – Details how the company allocates its ICT budget across the core areas of its business, specifically hardware, software, IT services, communications and consulting.

Reasons to buy

- How does XPO ranks among its peers in terms of revenue and market share?

- What are XPO's main growth strategies and how successful has the company been at implementing them?

- How has the company performed since 2014?

- How has XPO performed in comparison to its main competitors?

- What are XPO’s strengths and weaknesses and what are the opportunities and threats it faces?

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