FedEx Says Its Fiscal 1Q Earnings to Exceed Forecast
FedEx Corp. said late Tuesday its fiscal first-quarter earnings will exceed its earlier forecast, due in part to recent falling fuel costs, though it kept its full-year earnings forecast in place.
The company said it expects to report earnings of $1.23 per share for the quarter ended Aug. 31, up from its previous guidance of 80 cents to $1 per diluted share.
FedEx reaffirmed its earnings guidance for fiscal 2009 of $4.75 to $5.25 per diluted share, as weaker macroeconomic conditions offset the better-than-expected first quarter results, assuming current fuel prices.
“First quarter results benefitted from lower-than-expected fuel costs late in the quarter and stringent cost management,” said Alan Graf, FedEx’s chief financial officer.
“While sustained declines in fuel prices could improve our full-year outlook, the slowing economic growth trends in the U.S. are now extending to other areas of the global economy. As a result, we have reduced our planned capital investments by $400 million, to $2.6 billion for fiscal 2009,” he said in a statement.
FedEx, ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers, will release its first-quarter earnings report on Sept. 18.
