FedEx Cuts Fourth-Quarter Earnings Outlook
Company Cites High Fuel Costs
FedEx Corp. said late Friday it is cutting its fiscal fourth-quarter earnings guidance, blaming a steep increase in fuel costs.
The company said it expects to post a fourth-quarter profit of $1.45 to $1.50 per share, down from its previous prediction of $1.60 to $1.80 per share.
FedEx said its fuel costs have risen by more than 7% since it issued its previous guidance in March, Chief Financial Officer Alan Graf said in a statement.
Weak economic conditions also have resulted in lower demand for shipping and freight services, the Associated Press reported.
FedEx’s fiscal fourth quarter and year end May 31. FedEx Corp. is ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
