FedEx cuts forecast for economic growth
24 Mar 2012
FedEx has cut its forecast for growth projecting a profit range of $1.75 to $2 a share for the quarter, and with the low end trailing estimates.
The shares retreated the most since December.
The operator of the world's biggest cargo airline is reviewing its domestic economies and taking other measures in view of the weak economic outlook.
According to chief financial officer Alan Graf, the economy was not just strong enough as the company had hoped it would be a year ago.
FedEx cut its estimate for global gross domestic product growth to 2.3 per cent, from 2.9 per cent.
A strong holiday season and mild winter had helped FedEx beat Wall Street's profit forecasts, the giant package delivery company, however, warned today that it had lowered its outlook for the rest of this year due to tepid economic growth.