High oil prices blow to FedEx profit outlook
Friday, March 21st, 2008FedEx Corporation yesterday reported a higher-than-expected third-quarter net profit, but gave a low outlook for the current quarter citing soaring fuel prices and slowing US economic growth, sending the package delivery company’s shares down more than two per cent.
“Our fourth-quarter earnings outlook has been impacted by higher-than-anticipated fuel prices and a weak US economy,” chief financial officer Alan Graf said. “Looking ahead to our next fiscal year, we are expecting a continuation of fourth-quarter trends, which would result in limited earnings growth next year.
“We are scrutinising all expenses and investments to realign them with the current environment,” he added.
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