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FedEx delivers a glum forecast

Forecasts from FedEx, the second-largest package-delivery company, are closely watched for signals of economic health.

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Forecasts from FedEx, the second-largest package-delivery company, are closely watched for signals of economic health.

FedEx Corp. said its earnings are shrinking because the global economy is stalling, and it’s going to get worse next year. Factories are making fewer items for FedEx to ship, and customers are opting for cheaper delivery options. FedEx cut its profit forecast for the year ending in May to between $6.20 and $6.60 per share, from $6.90 to $7.40 previously.