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New Business Continues Strong Second Quarter Results for GXO

GXO Logistics, a global contract logistics services provider based in Greenwich, Connecticut, reported strong earnings in the second quarter of 2022, the company reported yesterday. This was his fourth solo-earning release for GXO since it was spun off from his XPO Logistics in August 2021.

Second quarter revenues were up 15% for the year to $2.2 billion. Net income for him was $51 million, up 78% from the second quarter of 2011. Adjusted EBITDA was $176 million, beating his record $161 million a year ago.

“1 year ago [yesterday]we became GXO, creating a pure logistics leader with a mission to accelerate growth, advance technical leadership, maintain a strong capital structure, and deliver value to our stakeholders. In 2019, we are proud to have delivered on our promises: delivering record operating results, completing the strategic acquisition of Clipper Logistics, accelerating automation and increasing market share, and achieving an investment grade Maintaining our balance sheet, setting industry benchmarks for ESG and establishing ourselves as the go-to logistics provider for the world’s leading blue-chip brand, we continue to benefit from enduring tailwinds Demand for leading-edge automation solutions is growing stronger as customers increasingly look to GXO to navigate supply chain complexity, rising inventory levels and high inflation.”

The company added that more than $1 billion in incremental revenue is committed for 2022. This represents his 14% of 2021 revenue, with about $500 million in 2023 and about $200 million in 2024, he added. He’s over $2 billion, well above 2021 levels.

GXO also won $475 million in new business each quarter, its highest quarter ever.

In an interview, GXO CIO Mark Manduca said: LM Organic revenue growth over the last five months was split relatively evenly between existing customers and new customer acquisitions.

“So this business is building on the wins it has had since last year, and existing customers are staying with us longer and longer,” he said. “At the same time, we have a pipeline of this amazing new business that is translating into a very healthy close rate. It is a business that aims to

On the current state of global logistics, Manduca acknowledged that there has been a lot of talk about the slowdown and cautioned that GXO has not felt the same level of pain in the market.

“What we’re looking at are customers who want to do business with us,” he said. “They want to save on variable costs and be more efficient with their inventory per SKU. This is the customer base they want us to come to. We are very happy with the new business wins because there is space.”

Regarding the existing growth facets of the market compared to GXO, he said it was clear that the broader market was seeing changes in discretionary spending in the form of fewer items being purchased compared to during the pandemic. I explained that there is. Shift to more experiential items such as luggage and clothing.

And he said there’s a buoyant factor about the economy from what he says is companies, across many different sectors, and they’re aware that things are getting worse, and what economists are pointing out. It shows listening, but these companies don’t see it in their own business.

“Our customers want to do business with us,” he said. “These are healthy, fast-growing, large, global blue-chip customers doing great things for their customers. And we want them to be more efficient, more accurate, faster. We are helping reach consumers. There is a huge demand for our services.”

About the author

Jeff Berman, Group News Editor Jeff Berman is the next Group News Editor. Logistics management, Modern material handlingWhen Supply chain management reviewJeff works and lives in Cape Elizabeth, Maine, covering all aspects of the supply chain, logistics, freight forwarding and material handling sectors on a daily basis.Contact Jeff Berman