FEDEX CUTS 4TH-QUARTER EARNINGS OUTLOOK AGAIN
FedEx Corp. on Monday reduced its fourth-quarter earnings outlook for the second time in little more than a month. The Memphis-based express giant projects results for the fiscal year ending May 31, to be within the range of 50 to 60 cents per share, compared with 85 cents per share last year.
First quarter fiscal year 2002 earnings are expected to be “significantly below last year's 58 cents per share,” said Alan B. Graf Jr., executive vice president and chief financial officer.
“Deteriorating economic conditions and the rapid decline in the high-tech and other durable goods industries have increasingly affected FedEx Express volumes,” Graf said.
FedEx Express's U.S. domestic average daily volume for April fell 9 percent while growth of FedEx International Priority shipments slowed to 1 percent, year-over-year, Graf said. “FedEx Ground package volume grew about 5 percent while package yields at FedEx Express and FedEx Ground continue to show solid growth.”
FedEx originally said April 4 that it would not meet its original projections of 85 to 90 cents per share.