February 15, 2019 / 4:12 PM / 9 months ago

CORRECTED-XPO Logistics shares dive after biggest customer slashes business

(Corrects name of analyst in last paragraph)

By Lisa Baertlein

LOS ANGELES, Feb 15 (Reuters) - XPO Logistics Inc shares sank more than 17 percent after it said on Friday its biggest customer, believed to be Amazon.com, slashed its business with the warehousing and last-mile delivery provider by two-thirds.

The company’s shares fell $10.49 to $49.06 a day after XPO missed fourth-quarter profit targets and warned that it could lose $600 million in revenue in 2019 due to a reduction in business from its biggest customer.

XPO did not identify the customer. According to analysts, industry insiders and a regional news report, the customer is Amazon. Amazon did not immediately respond to requests for comment.

“Reading between the lines, we believe the shipper that is paring down its parcel injection, brokerage, last mile, and logistics activity with XPO is Amazon,” J.P. Morgan analyst Brian Ossenbeck said in a note. (Reporting by Lisa Baertlein in Los Angeles Editing by Phil Berlowitz)

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