FEDEX CORP. REVISES 4TH-QUARTER PROJECTIONS FOLLOWING MARCH DIP
FedEx Corp. said Wednesday it is revising its fiscal fourth-quarter earnings projections after March volumes failed to meet expectations.
U.S. domestic express package volume at FedEx Express is expected to decline 4.4 percent compared to year-earlier volumes, well below the FedEx's forecast of a 1 to 2-percent decline.
FedEx International Priority volume grew 5 percent and FedEx Ground grew 6 percent, compared to forecasts of 5 to 7 percent for each.
'Economic conditions have deteriorated more than we anticipated, which is adversely impacting our volumes,' said Alan B. Graf Jr., executive vice president and chief financial officer for Memphis-based FedEx. 'If these volume trends continue, we think it is unlikely that we will hit our prior earnings forecast of 85 to 90 cents per share for the fourth quarter.'
Graf added that FedEx is 'encouraged' by FedEx Ground's March performance, 'as well as the market's growing acceptance of FedEx Home Delivery.'