Business
    Next Score View the next score

    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.

    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.

    Advertisement