XPO Logistics Inc (NYSE:XPO) Shuts down Memphis Warehouse
XPO Logistics Inc (NYSE:XPO) lost 1.87% in the last trading session to close at $54.06. The stock has somewhat managed to recover after a drop this week.
XPO Logistics will shut down Memphis based Verizon contracted warehouse. The closure of the distribution center is on the backdrop of investigation led by the New York Times into discrimination of pregnancy against female workers. XPO stated that closure of the distribution center is as per the business partners’ advice.
Over 400 workers will lose employment
Following the closure of the distribution center, more than 400 workers will lose their employment. However, the majority of these employees could find jobs in Zynga’s 11 other business facilities. The company could open a new facility in Memphis creating jobs for 80 employees later this year.
XPO Logistics files for refinancing amendment
XPO Logistics has filed for an amendment to refinance the existing term loans. The company seeks to get a loan of $1.503 billion to close the existing term loan of $1.494 billion and pay interests, expenses and associated fee.
XPO Logistics posts revenues of $4.34 billion in Q3
XPO Logistics reported revenue of $4.34 billion in Q3. The company set a full year target of $1.585 billion after adjusted EBITDA. It has reduced the profit outlook for 2019 on the backdrop of a loss from a large customer. The company is refocusing on stock buyback efforts.
Brad Jacob, Chief Executive Officer of XPO Logistics, said the company is restrained from the earlier spending plan of $8 billion for more significant acquisitions. Instead, it will focus on the purchase of its stock. On February 4, 2019, the company concluded the purchase of its shares. XPO Logistics’ board gave the nod for additional buyback of shares of worth $1.5 billion.
According to the CEO, the company is looking for closing the deal of acquiring two companies that fit with its business. At the same time, the company shares took a beating after the Q4 results missed the estimates. XPO Logistics decided to buy back shares instead of acquisitions.
The largest company – XPO Logistics conducts logistics operations in North America. It became an investor favorite following the takeovers during 2012 and 2015 and grew faster. The company’s stock tumbled in recent months on the news of mistreatment of employees.