(Reuters) – XPO Logistics Inc, one of the world’s largest global transport and warehouse companies, reported on Wednesday a smaller-than-expected drop in quarterly profit after it lost $600 million in business from its top customer – widely believed to be Amazon.com Inc.
Connecticut-based XPO disclosed in February that its largest customer canceled two-thirds of its business with the company, forcing it to cut its 2019 profit forecast for the second time in two months.
Current and former XPO employees as well as industry insiders have told Reuters that the customer was Amazon, which is spending billions of dollars to build its own transportation infrastructure to contain swelling shipping costs. XPO and Amazon have declined to comment.
XPO refocused and booked $1.1 billion in new business