FedEx upgrades first quarter outlook as fuel prices abate

FedEx upgrades first quarter outlook as fuel prices abate The recent return to earth of oil prices has caused FedEx Corp. to upgrade its earnings guidance for its first quarter ended Aug. 31.
   The Memphis, Tenn.-based company now expects to report first quarter earnings of $1.23 per diluted share, compared to the previous expectation of 80 cents to $1 per diluted share. FedEx has maintained its fiscal year outlook, based on the assumption of current fuel prices, of $4.75 to $5.25 per diluted share.
   'First quarter results benefited from lower-than-expected fuel costs late in the quarter and stringent cost management,' said Alan B. Graf Jr., executive vice president and chief financial officer. 'While sustained declines in fuel prices could improve our full-year outlook, the slowing economic growth trends in the U.S. are now extending to other areas of the global economy. As a result, we have reduced our planned capital investments by $400 million, to $2.6 billion for fiscal 2009.'
   FedEx will release a full first quarter earnings report on Sept. 18.