{{ currentBoardShortName }}
  • Markets
  • Indices
  • FX
  • Energy
  • Metals
  • Live
Markets
As of: {{timeStamp.date}}
{{timeStamp.time}}

Markets

{{ currentBoardShortName }}
  • Markets
  • Indices
  • FX
  • Energy
  • Metals
  • Live
{{data.symbol | reutersRICLabelFormat:group.RICS}}
 
{{data.netChng | number: 4 }}
{{data.netChng | number: 2 }}
{{data | displayCurrencySymbol}} {{data.price | number: 4 }}
{{data.price | number: 2 }}
{{data.symbol | reutersRICLabelFormat:group.RICS}}
 
{{data.netChng | number: 4 }}
{{data.netChng | number: 2 }}
{{data | displayCurrencySymbol}} {{data.price | number: 4 }}
{{data.price | number: 2 }}

Latest Videos

{{ currentStream.Name }}

Related Video

Continuous Play:
ON OFF

The information you requested is not available at this time, please check back again soon.

More Video

Dec 18, 2018

FedEx slumps with weaker outlook, stoking doubts on global trade

FedEx

Security Not Found

The stock symbol {{StockChart.Ric}} does not exist

See Full Stock Page »

FedEx Corp. (FDX.N) cut its profit forecast and announced an international capacity reduction as the courier grapples with a slowdown in global trade.

  • FedEx slashed its target for adjusted earnings in fiscal 2019 to US$15.50 to US$16.60 a share from a previous goal of US$17.20 to US$17.80. The company also said in a statement that it won’t meet a target for operating-profit growth at the Express unit of US$1.2 billion and US$1.5 billion in fiscal year 2020.

Key Insights

  • The company fueled concerns about the economic outlook as Chief Financial Officer Alan Graf said FedEx was taking a hit from “ongoing deceleration in global trade near-term.”
  • The guidance cut, coming three months after the company had raised its outlook, shows how the economic environment has changed.
  • International capacity reductions at the Express air-freight unit and a voluntary buyout program show FedEx’s planning for an economy with less demand for package deliveries.
  • FedEx is also getting hurt in Europe, where “economic weakness that accelerated during the quarter” will delay the benefit of the company’s acquisition of TNT Express.

Market Reaction

  • FedEx fell 4.3 per cent to US$177.05 after the close of regular trading in New York. The shares slid 26 per cent this year through Tuesday, compared with an 18 percent drop for United Parcel Service Inc. A Standard & Poor’s index of industrial companies dropped 13 per cent.