CEO Brad Jacobs built XPO Logistics through merging with other companies and the
purchase of some other companies, for the past eight years. The CEO seems to be back on the
market to make more acquisitions. According to reports by Morgan Stanley analysts, he is taking
a part of his time and dedicating it to search for new possible transactions. With respect to the
company's great history in terms of aggressiveness in its acquisitions, the targeted acquisitions
may not be as significant as what there has been in the past, but it marks quite a big change
compared to earlier in the year when all was quiet.

Earlier on, the company had declared that they were suspending all activities to do with
any mergers and acquisitions for their own long term plans after the stock went down back in
December. With the stocks being priced so lowly, XPO decided to purchase back its stock,
spending around 75% of the set aside cash for the same. Jacobs is still focused on future
purchases. When he joined XPO, they made rapid purchases transforming from a $100 million-a-
year operation to a nearly $17.3 billion enterprise in 2018, acquiring and integrating 17
companies between 2011 and 2015, and in the process, acquiring logistics and transport
company Con-way for $3 billion.

Reports by Morgan Stanley indicate that XPO will be more focused on smaller
companies and individual opportunities rather than going for established companies and those
that have been in the pipeline already. The report also stated that XPO would most likely shun
freight forwarding operations due to some disruptions in the sector. XPO is also unlikely to go in
any further debts or issue equity in any potential purchases. Travio Headley, XPO’s director of
investor relations, reported that they are only in the early stages of discussions with possible
companies.

Jacob was adamant that the state of affairs in terms of demand would remain poor until
there is a well-defined framework of operation with respect to talks between China and the U.S,
and also, until stability in the United Kingdom with Britain’s possible exit for the European
Union. The company is now focused on ensuring that it is more efficient and make more savings
through optimization and higher levels of warehouse automation. XPO also aims at ensuring it
optimizes the hiring process.

Just in the past period of a year, XPO's stock prices have fluctuated so much. In
September 2018, the price was at $115 per share and fell to $41 early this year following a series
of poor financial results and even further a matter of questioning managerial competence and the
accounting methods. Back in May, Teamsters Union had claimed that shareholders had no
confidence in Jacobs' ability to run the company; on the contrary, he was re-elected later.
Financial results as of the 1 st of August were quite mixed. Net income dropped from $159
million to $145 million, though earnings per share rose up to $1.32 from $1.14, both in
comparison to 2018. For the first six months of 2019, a net income of $197 million was recorded
compared to the previous year's $238 million, the price per share for the same period was at
$1.66 while at $1.70 the previous year. The operating ratio improved from 84.3 a year ago to
80.3.