GXO Logistics, which reported a 19% jump in second quarter revenue, says that contracts are getting longer. The company generated $2.8bn in the second financial quarter. During this period GXO signed about $270m of new business wins.
Chief executive Malcolm Wilson said: “We’re seeing contract duration increase, as customers look to outsource to a trusted partner with global scale who can manage the complexity of their supply chain.”
Chief financial officer Baris Oran said that 2% of the 19% growth was organic.
“Our organic growth was driven by strength in diverse parts of our business, including aerospace, data center support and omnichannel retail, led by cold storage supply chain.”
The recent acquisition of Wincanton will help future growth, says the company.
“We have acquired Wincanton at an attractive valuation,” said Wilson. “We look forward to accelerating our future organic growth with this acquisition, as we have done with our expansion in Germany.
“In both our Europe and UK markets, we’re seeing our customers grow more confident, and launch new and larger projects. This bodes well for our future growth, along with our acquisition of Wincanton.”
“We believe we saw the bottom of the inventory cycle in the fourth quarter of last year. We’re beyond that inflection point, and we’re seeing volume trends beginning to improve.”
