A major customer ends its contract.

Losing a major customer can put pressure on a company. The extent also depends on which costs fall and whether new orders arrive.

The company, event and all figures are fictional.

What happened?

In this fictional example, Hafenwerk's largest customer announces that it will end its transportation contract at year-end. It has accounted for a quarter of revenue. Replacement orders have not yet been confirmed.

What does this mean for the company?

If these orders disappear, Hafenwerk could receive substantially less revenue. Costs for vehicles, warehouses and staff do not automatically disappear. Profit could therefore fall more than revenue. However, some costs might be saved.

What remains uncertain?

Will Hafenwerk find new customers in time? Which costs can it actually reduce? The size of the profit shortfall and whether enough cash will remain for ongoing expenses are not yet known.

View full details and source notes

Fictional example. There are no real sources for it. There is no original announcement for this news story. For a real story, the announcements and reports used would be linked directly here.

How large the affected share is

In the fictional comparison, €25 million of total revenue of €100 million comes from the departing customer. That is one quarter. It does not imply a loss of profit of the same size.

Which information is still missing

The profit from this contract, possible savings and binding replacement orders are unknown. Without this information, the financial impact cannot be calculated precisely.

What a real source would need to establish