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FedEx earnings drop on weak global economy

FedEx says its fiscal third-quarter profit tumbled 75 percent as severe weakness in the global economy offset the benefit of lower fuel prices.
/ Source: The Associated Press

FedEx says its fiscal third-quarter profit tumbled 75 percent as severe weakness in the global economy offset the benefit of lower fuel prices.

The Memphis, Tenn.-based company said Thursday it earned $97 million, or 31 cents per share, compared with $393 million, or $1.26 a year earlier.

Revenue fell 14 percent to $8.14 billion, from $9.44 billion.

Thomson Reuters says analysts expected profit of 46 cents per share on revenue of $8.65 billion.

To further reduce costs, FedEx plans to cut more jobs, reduce some workers’ hours and trim air and truck capacity.

The company expects fourth-quarter earnings of 45 to 75 cents per share, compared with $1.45 a year ago. Analysts forecast 72 cents per share.