LOS ANGELES (Reuters) - XPO Logistics Inc (XPO.N) reported a sharp decline in quarterly profit after the novel coronavirus pandemic pummeled demand from consumers and businesses.
The transportation and warehousing company said first-quarter net income attributed to common shareholders tumbled more than 51% to $21 million, or 20 cents per share. Revenue fell over 6% to $3.86 billion.
Executives at Greenwich, Connecticut-based XPO suspended 2020 financial forecasts after demand “rapidly deteriorated” in mid-March, when COVID-19 infections reached pandemic proportions.
XPO’s core transportation segment revenue declined almost 8% to $2.46 billion, due to COVID-19 and the loss of a large portion of business from Amazon.com Inc (AMZN.O) - its largest customer.
Prior to the coronavirus outbreak, XPO was working to squeeze costs and win new e-commerce business to offset the loss of two-thirds - or $600 million - of its business from Amazon.
It abandoned plans to break up via a sale or spinoff on March 20.
Shares in the company, which topped $114 in September 2018, were up almost 2% to $65 in extended trading on Monday.
Reporting by Lisa Baertlein in Los Angeles; Editing by Tom Brown