("CORRECT: Fedex Cuts 3Q Profit Target On Storms, Fuel Costs" at
4:42 p.m. EST and an earlier version at 4:24 p.m. EST, misstated
the market leader in international package shipping in the second
paragraph. The correct version follows:)
DOW JONES NEWSWIRES
FedEx Corp. (FDX) lowered its outlook for earnings in the
current quarter because severe winter storms and
higher-than-expected fuel prices pressured expenses higher.
The company, among the world's largest international package
shippers, said those costs would also alter its full-year guidance,
which it will adjust when it announces full results for the fiscal
third quarter on March 17.
FedEx's results had been gaining momentum as the global economic
picture improved. In its second-quarter results, profit fell but it
reported record volume in the overseas business.
FedEx lowered its target for current-quarter earnings by 25
cents to a range of 70 cents a share to 90 cents a share from its
December forecast. The new targets mean the company could see
per-share profit decline on the year.
"We experienced significant network disruptions in the U.S. and
Europe and unusually high costs from severe winter storms," Chief
Financial Officer Alan B. Graf Jr. said Monday. He added that fuel
prices continued to escalate since the December guidance.
The new quarterly forecast assumes no more weather effects and
stable fuel prices for the rest of the quarter.
Shares were down 0.6% at $93.40 in after-hours trading.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com