FedEx earnings fall on weak air segment, Sandy
NEW YORK FedEx, the world's second-largest package delivery company, says its profit slid 12 percent in the second quarter on weakness in its air network and the impact of Superstorm Sandy.
The U.S.-based company maintained its forecast for the full fiscal year ending in May, hoping that a strong holiday season and a massive cost-cutting plan will offset global economic weakness.
FedEx Corp. (FDX) posted earnings of $438 million, or $1.39 per share, on Wednesday, compared with $497 million, or $1.57 per share, a year ago. Superstorm Sandy cut earnings by 11 cents per share by driving down shipping volume and increasing costs.
Revenue rose to $11.1 billion from $10.6 billion previously.
Analysts forecast earnings of $1.41 per share on revenue of $10.84 billion, according to FactSet.
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