FedEx Slashes Earnings Forecast
Parcel carrier FedEx on Friday cut its second-qaurter and full-year earnings forecasts, citing skyrocketing diesel prices and a weak LTL environment.
"Since we provided earnings guidance for the second quarter in September, our fuel costs have increased more than eight percent, or $85 million," said Alan Graf, FedEx’s chief financial officer. “In addition, less-than-truckload freight trends in the FedEx Freight segment remain weak, despite economic signs that the decline in U.S. industrial production has hit bottom.”
FedEx, Memphis, Tenn., said in a statement that it now expects to earn $1.45 to $1.55 a share for the quarter ending Nov. 30, compared with its previous forecast of $1.60 to $1.75.
For the full year, FedEx said it expects to earn $6.40 to $6.70, down from $6.70 to $7.10.
The company is due to release earnings for its fiscal second quarter on Dec. 20.
FedEx ranks No. 2 on the Transport Topics 100 list of the largest for-hire carriers in the United States and Canada.
