FedEx Warns of Another Hit to Profits
December 17 2019 - 4:05PM
Dow Jones News
By Paul Ziobro
FedEx Corp. cut its earnings targets for the fourth time this
calendar year, as the delivery giant records less revenue from its
Express business and books higher costs tied to delivering more
e-commerce packages to homes.
The company is ramping up efforts to control expenses amid a
global slump in air shipments and a surge in residential deliveries
during a shortened holiday shopping season. Those actions include
grounding aircraft, eliminating some international flights and
restricting hiring.
The current fiscal year "is a year of continued significant
challenges and changes for FedEx, particularly in the quarter just
ended due to the compressed shipping season," FedEx Chairman and
Chief Executive Fred Smith said in a statement.
FedEx shares fell more than 6% in late trading to $153.34.
FedEx posted a 40% drop in profit for its fiscal second quarter
and a 3% drop in revenue. It continues to deal with the loss of
Amazon.com Inc. shipping contracts, which totaled $900 million in
annual revenue. FedEx said the pricing environment is more
competitive as well.
Write to Paul Ziobro at Paul.Ziobro@wsj.com
(END) Dow Jones Newswires
December 17, 2019 16:50 ET (21:50 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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