3:12 p.m. ET, February 15, 2019
Logistics company XPO shellacked on Amazon delivery rumors
From CNN Business' Paul R. La Monica
Amazon (
AMZN) hasn't been shy about its plans to take more control of the package delivery process. That's not good news for traditional delivery companies.
One of them, XPO Logistics, warned in its
latest earnings report it was cutting its outlook due to
"the impact of our largest customer substantially downsizing its business." XPO Logistics added in its
annual filing with the SEC that the decision will lead to a
$600 million hit to its 2019 sales.
XPO Logistics wouldn't name the customer. But Deutsche Bank analyst Amit Mehrotra said in a report it likely was Amazon. Several other analysts have speculated as such too. Amazon told CNN Business it had no comment.
A spokesperson for XPO Logistics remained hopeful though. "We intend to replace this business over time with other customers," the spokesperson said. And CEO Bradley Smith noted during a conference call that its five biggest customers will only make up about 8% of its total sales this year.
But investors are nervous.
XPO Logistics (XPO) plunged nearly 15% Friday -- and that dragged down
FedEx (
FDX) and
UPS (
UPS) as well.