Business

Market movers

FedEx’s quarterly profit plunges 31%

FedEx is considered a bellwether because so many consumers and businesses use its services.

Justin Sullivan/Getty Images

FedEx is considered a bellwether because so many consumers and businesses use its services.

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FedEx’s quarterly profit fell 31 percent to $361 million, or $1.13 per share, as customers picked slower but less-expensive international air-shipping options. The company cut its forecasts: It now expects adjusted earnings of $1.90 to $2.10 per share in the current quarter and $6 to $6.20 for the year, below what analysts predicted. Also, FedEx­ will cut capacity to and from Asia and might retire some older airplanes. It plans to cut annual costs $1.7 billion by 2016 with buyouts that will reduce staffing at least 10 percent by May 2014.

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