Amazon com (NASDAQ:AMZN)
Historical Stock Chart
3 Months : From Sep 2019 to Dec 2019
By Paul Ziobro
FedEx Corp.'s profit fell in its latest quarter as added costs to expand services, the loss of Amazon.com Inc. as a major customer and a weakening economic backdrop weighed on results.
The delivery giant lowered its outlook for the year and is taking more cost-cutting steps to try to offset the weaker environment, including reducing the capacity in its global air delivery network, which is feeling the effects of global trade disruption more acutely than other FedEx units.
"Our performance continues to be negatively impacted by a weakening global macro environment driven by increasing trade tensions and policy uncertainty," FedEx Chief Executive Frederick Smith said in a news release.
FedEx said it now expects lower revenue for the coming year than when it last issued a forecast in June.
Shares of FedEx fell more than 7% to $160.75 in after-hours trading Tuesday.
For the first quarter, which ended Aug. 31, FedEx reported a profit of $745 million, or $2.84 a share, compared with net income of $8.35 million, or $3.10, a year earlier. Excluding integration expenses, per-share earnings were $3.05.
Revenue declined slightly to $17.05 billion.
Analysts polled by FactSet expected earnings of $3.15 a share and $17.06 billion in revenue.
Write to Paul Ziobro at Paul.Ziobro@wsj.com
(END) Dow Jones Newswires
September 17, 2019 16:57 ET (20:57 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.