FedEx cuts profit forecast on weaker truck-shipping demand
- 9 years ago
FedEx, considered a bellwether for the U.S. economy because of the range of products it moves, cut its full-year profit forecast just three months into the company's new fiscal year.
The company cited softer demand for some shipments that crisscross the U.S. by truck and higher costs in its Ground unit.
Earnings will be $10.40 to $10.90 per share before some costs, short of the company's previous projection of $10.60 to $11.10.
Profit for the quarter ended Aug. 31 was $2.42 a share, FedEx said Wednesday.
That trailed the $2.45-a-share average of 25 estimates compiled by Bloomberg.
FedEx suffered in its first fiscal quarter as slower manufacturing and reduced global trade weighed on results.
The company cited softer demand for some shipments that crisscross the U.S. by truck and higher costs in its Ground unit.
Earnings will be $10.40 to $10.90 per share before some costs, short of the company's previous projection of $10.60 to $11.10.
Profit for the quarter ended Aug. 31 was $2.42 a share, FedEx said Wednesday.
That trailed the $2.45-a-share average of 25 estimates compiled by Bloomberg.
FedEx suffered in its first fiscal quarter as slower manufacturing and reduced global trade weighed on results.