FedEx Cuts Forecast as Economy Hurts Premium Shipping - Bloomberg
FedEx Corp. (FDX), operator of the world’s largest cargo airline, cut its annual profit outlook as a weakening economy spurs shippers in the U.S. and overseas to switch to cheaper delivery options.
“Fundamentally what’s happening is that exports around the world have contracted and the policy choices in Europe, the U.S. and China are having an effect on global trade,” Chief Executive Officer Fred S said on a conference call. “Over the last few months, exports and trade have gone down at a faster rate than GDP has.”
In the Express segment, FedEx’s largest by sales, operating margin slipped to 3.1 percent in the three months through August from 4.4 percent a year earlier. Revenue from domestic shipments in the U.S. grew 2 percent per package as higher rates eased the effects of a 5 percent drop in average daily volume.
FedEx Corp. (FDX), operator of the world’s largest cargo airline, cut its annual profit outlook as a weakening economy spurs shippers in the U.S. and overseas to switch to cheaper delivery options.
“Fundamentally what’s happening is that exports around the world have contracted and the policy choices in Europe, the U.S. and China are having an effect on global trade,” Chief Executive Officer Fred S said on a conference call. “Over the last few months, exports and trade have gone down at a faster rate than GDP has.”
In the Express segment, FedEx’s largest by sales, operating margin slipped to 3.1 percent in the three months through August from 4.4 percent a year earlier. Revenue from domestic shipments in the U.S. grew 2 percent per package as higher rates eased the effects of a 5 percent drop in average daily volume.
