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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.
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