FedEx says the global economy is worsening, and cut its forecast again.
"Exports and trade have gone down at a faster rate than [gross domestic product] has," Chief Executive Fred Smith said during a conference call with analysts after FedEx reported a slip in fiscal first-quarter profit. He sad new products launches from Apple Inc. and Microsoft Corp. wouldn't be enough to counter the broader economic weakness, especially as more cargo is carried by non-premium, slower shipping options.
FedEx has been moving to trim costs for much of the past year, but it made clear Tuesday that the benefits haven't come quick enough to offset the weak economy. FedEx lowered its full-year earnings view, now expecting between $6.20 and $6.60 a share, down from an already-disappointing forecast of $6.90 to $7.40 in June.
Read more at The Wall Street Journal.