February 14, 2019 / 9:55 PM / 9 months ago

XPO Logistics warns on 2019 growth

Feb 14 (Reuters) - XPO Logistics Inc, one of the largest global freight transportation and warehousing companies, reported on Thursday a quarterly profit that missed company targets and warned that a reduction of business from its biggest customer would hit 2019 growth.

The company’s shares plunged 12.3 percent in after-hours trading.

Fourth-quarter net income attributable to common shareholders was $84 million, or 62 cents per share. That was down from $189 million, or $1.42 per share, a year earlier when XPO got a large boost from U.S. tax reform.

Excluding items, XPO earned 72 cents a share.

Chief Executive Bradley Jacobs said the quarterly result missed internal targets due to challenges in France and the U.K., as well as the loss of profit in the postal injection business with its largest customer.

Jacobs forecast 2019 adjusted earnings growth in the 6-10 percent range. “This anticipates the impact of our largest customer substantially downsizing its business portfolio with us starting in the first quarter, as well as our more cautious view of Europe,” he said.

XPO’s shares had closed down 0.2 percent at $59.55 on the New York Stock Exchange ahead of the release of its results. (Reporting by Lisa Baertlein in Los Angeles; Editing by Leslie Adler)

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