FEDEX POSTS LOSS ON FUEL , ECONOMY ; WARNS FOR 09

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FEDEX POSTS LOSS ON FUEL , ECONOMY ; WARNS FOR 09

 user 2008-06-18 at 11:27:31 am Views: 52
  • #19870
    http://biz.yahoo.com/ap/080618/earns_fedex.html
    FedEx posts loss on fuel, economy; warns for ’09
    FedEx swings to loss 4th-quarter and issues forecast well below Wall Street expectations
    MEMPHIS,
    Tenn.  — FedEx Corp. reported a fourth-quarter loss Wednesday that
    missed Wall Street expectations and it offered a gloomy outlook for its
    shipping business that showed how much higher fuel prices are eating
    into profits.Considered a bellwether for the broader U.S. economy, the
    FedEx earnings forecast fell well below Wall Street expectations, and
    its shares fell 3 percent, or $2.59, to $81.74 at the open of trade.

    FedEx
    sees 2009 earnings of $4.75 to $5.25 per share. Wall Street had
    predicted $5.92 per share. The package delivery company expects to earn
    80 cents to $1 per share in the first-quarter. Analysts forecast $1.27
    per share.The international package shipper posted a fourth-quarter
    loss of 78 cents a share, or $241 million, compared with a profit of
    $610 million, or $1.96 per share, for the same period last year.
    Excluding one-time charges, FedEx earned $1.45 per share.Revenue rose 8
    percent to $9.87 billion from $9.15 billion a year earlier.Analysts
    polled by Thomson Financial expected $1.47 per share on revenue of $9.6
    billion.”Record high fuel prices and the weak U.S. economy dampened
    volume growth and substantially affected our bottom line … We will
    continue to reduce expenses to match volume and revenue expectations,”
    FedEx chairman Frederick W. Smith said in a statement.Fourth-quarter
    earnings included a one-time charge of $891 million for the expected
    costs of renaming the company’s office service and copying division
    from FedEx Kinko’s to FedEx Office.FedEx had predicted fourth-quarter
    earnings of $1.45 to $1.50 a share. That projection was lowered from
    earlier company guidance of $1.60 to $1.80 a share, due largely to
    rising fuel costs.