up nicely today on the Conference Call.
We’re studying the freight that we are taking and purging unattractive freight. We’re making sure that we’re charging for it appropriately. We are growing the business with small and medium-sized customers as well as the three to balance the network. We’re looking at rates on a Lane by Lane customer by customer bases and were optimizing those
were going to continue to rationalize the back office and two to capitalize on the synergies with the rest of XPO and I mentioned before the procurement opportunity which is really, really a mess. Much larger than I originally expected
IOW the business was run poorly before XPO got it,they can do better even on no increase in volume.
long term I think they will sell some or all of the trucking unit. Having turned it around, helped by the simple means of dumping customers that are costing them money.
I thought they had a nice conf call. Couple encouraging takeaways:
- They are on hold for any further acquisitions for the foreseeable future until they can pay down some debt. Reassuring in that they are not totally reckless.
And then final question just so you think about the 2018 targets and I know they’re exclusive of incremental M&A. But from a free cash perspective it seems particularly once you get past some of the deal cost in 2016, the free cash will ramp up pretty meaningfully. I just want to get Brad your rough sense on conceptually how you think about a descent [amount with the chapter] in the short-term with Con-way but as we get out in ’17 and probably more likely ’18, what you’d do with the cash?
Well, on the first [business] we’re going to pay down debt with cash and improve the leverage of the Company. And not this year, maybe not the rest of this year or debt count to the year I don’t think those of you to time to be doing big acquisitions I think with much better use of our time just focus in on this beautiful business that we put together and improve the level of customer service, improve the profitability just make it all at hum as one coherent global organization. We can revisit the acquisition trail after that but that’s not our near term focus at this point.
- They repeatedly discussed their focus on profitability.
And on this subject of unprofitable customers and unprofitable winds we are not a nonprofit business we are four profit business. And we have over 50,000 customers and I’m sorry to admit there is a fair chunk and that were losing money on and that’s not fair we have cost and we have obligations to our shareholders and employees and we need to basically go to those customers and have discussions about pricing and or when contract expire not renewing because we are not in the business of doing unprofitable business that’s not what we’re here for so unprofitable locations, unprofitable customers, unprofitable lends this should not be in our vocabulary.
Looking forward to seeing how this plays out.