ON YOUR SIDE: Shares of the delivery giant fell 20% on news that it was slashing its profit outlook, heightening recession fears. fedex onyourside consumernews alabamanewsnetwork
FedEx said Thursday it is shuttering storefronts and corporate offices while putting off new hires in a belt-tightening drive brought on by drop-off in its global package delivery business.
The company based in Memphis, Tennessee, warned it will likely miss Wall Street's profit target for its fiscal first quarter that ended Aug. 31. And it said it expects business conditions to further weaken in the current quarter amid weaker global volume."Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S.," FedEx CEO Raj Subramaniam said in a statement.
The company's FedEx Express business was particularly hurt by challenges in Europe and weaker economic trends in Asia, which led to a roughly $500 million revenue shortfall for the segment. FedEx Ground revenue, meanwhile, came in about $300 million below the company's forecasts. High operating expenses were also a drag on the company's results, FedEx said. In response, it said it will cut costs by closing over 90 FedEx Office locations and five corporate offices, deferring new hires and operating fewer flights.
The company scrapped its forecast for its earnings in its current fiscal year that it had issued less than three months ago. For the three months ended Aug. 31, FedEx now projects adjusted earnings per share of $3.44 and $23.2 billion in revenue. That's below analysts' consensus forecast of $5.14 adjusted earnings per share and $23.6 billion in revenue, according to FactSet.News of FedEx's poor results appeared to spook investors, denting overseas markets and sending U.S.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
High school football: Edison 20, Lanier 16It took five lead changes to determine a winner in Thursday night’s slugfest at Alamo...
Consulte Mais informação »
Sniper denied parole, 20 years after terrorizing D.C. areaVirginia has denied parole to convicted sniper killer Lee Boyd Malvo, ruling that he is still a risk to the community two decades after he and his partner terrorized the Washington, D.C., region with a series of random shootings
Consulte Mais informação »
CBI issues alert for missing 20-year-old woman with cognitive impairmentMISSING: The Colorado Bureau of Investigation has issued an alert for a missing 20-year-old woman with cognitive impairment.
Consulte Mais informação »
Brutal knife attack on roommate gets Santa Rosa man 20-year prison termA Santa Rosa man was sentenced on Thursday to 20 years in prison for a brutal knife attack that left his housemate disfigured, according to Sonoma County District Attorney Jill Ravitch.
Consulte Mais informação »
D.C. sniper denied parole 20 years after shootingsA series of Supreme Court rulings and a change in Virginia law gave Lee Boyd Malvo the opportunity to seek parole after serving nearly two decades.
Consulte Mais informação »
20 Pairs Of Chelsea Boots To Take You Through The SeasonsPlatforms, chunky heels, lug soles, boots with (faux) fur – and even a pair made from plastic bottles.
Consulte Mais informação »