Shares of Forward Air fell more than 40 per cent in early trading after the company warned of a potential loss of a major customer and stated that its strategic review produced no actionable proposals, reported New York's FreightWaves.

Forward reported a net loss of US$34 million, or $1.09 per share, for the first quarter. Consolidated revenue dropped 5 per cent year on year to $582 million, while adjusted EBITDA fell 4 per cent to $70 million.

Management indicated that a contract logistics customer, representing about 10 per cent of Forward's $2.5 billion annual revenue, intends to diversify its suppliers. Chief executive Shawn Stewart noted that the decision was linked to the customer's risk management strategy and not to Forward's service. Any transition would not occur until next year.

The company stated that the potential customer loss and other factors prevented a reasonable take-private offer. Forward will now seek to sell its intermodal unit and two smaller Omni businesses, which generated $394 million in revenue last year. The Omni units could be sold within 60-90 days, with the intermodal business targeted for sale by year-end.

In its expedited segment, revenue rose 9 per cent to $273 million despite lower tonnage. The operating margin improved to 7.4 per cent. Omni reported $302 million in revenue, down 7 per cent, while intermodal revenue fell 15 per cent due to weaker port activity.

Operating cash flow improved to $58 million, with liquidity rising to $402 million. Net debt stood at US$1.65 billion, equal to 5.4 times trailing adjusted EBITDA. The company stated that proceeds from asset sales will be used to reduce leverage.