FedEx Profit Trails Estimates as Shipment Growth Slows - Bloomberg
FedEx Corp., the second-largest U.S. package-shipping company, posted quarterly profit that trailed analysts’ estimates as growth slowed in international express deliveries and costs increased.
Growth in international express shipments, FedEx’s most profitable business, slowed with volumes rising 11 percent in the quarter, down from gains of 20 percent or more in each of the previous two quarters. FedEx also faced higher fuel and maintenance costs for its jet fleet, and increased compensation expenses from restoring benefits trimmed during the recession.
FedEx Corp., the second-largest U.S. package-shipping company, posted quarterly profit that trailed analysts’ estimates as growth slowed in international express deliveries and costs increased.
Growth in international express shipments, FedEx’s most profitable business, slowed with volumes rising 11 percent in the quarter, down from gains of 20 percent or more in each of the previous two quarters. FedEx also faced higher fuel and maintenance costs for its jet fleet, and increased compensation expenses from restoring benefits trimmed during the recession.
