The business segments under consideration for sale include XPO’s North American and European transportation and logistics divisions, Jacobs told Jim Cramer during a CNBC Mad Money segment. However, XPO doesn’t plan to sell its entire business or its North American Less-Than-Truckload (LTL) segment. LTL was a particularly strong performer among XPO’s business segments in 2019.
The sell-off strategy is planned to address management concerns that XPO’s current business is undervalued as a diversified business, Jacobs said. He added that selling off or spinning out the segments into pure-play companies would increase the valuation of the individual segments.
Regarding the larger logistics outlook, Jacobs added that he’s “sensing a bottom,” that the industrial economy is still not very robust but seems to no longer be on the decline, and that consumer and retail demand is strong.10 - Readers Like This Post