FedEx Lowers Annual Profit Guidance After Quarterly Results Miss Target
March 21 2017 - 5:47PM
Dow Jones News
By Maria Armental
FedEx Corp. on Tuesday cut its profit projection for the year,
but the package-delivery giant expects investments in its ground
operations to pay off over the next three years.
FedEx said it now expects to make $10.80 to $11.30 a share in
adjusted profit, down from its earlier view of $10.95 to $11.45 a
share. The company also cut its capital spending forecast by $300
million to $5.3 billion.
Over all, third-quarter profit rose 11% to $562 million, or
$2.07 a share. Excluding integration and restructuring costs tied
to the acquisition of TNT Express, profit rose to $2.35 a share
from $2.51 a share.
Meanwhile, revenue rose 18% to $15 billion.
Analysts surveyed by Thomson Reuters had projected $2.62 a share
in adjusted profit on $14.99 billion in revenue.
Shares, up 17% over the past 12 months, fell 3.6% to $185 in
after-hours trading.
Dutch package-delivery company TNT Express gave FedEx an
established ground network in Europe, adding to its already sizable
air-express delivery operations there.
By the 2020 fiscal year, FedEx expects the integration of TNT
Express, fleet upgrades, and rising e-commerce volumes to add
between $1.2 billion and $1.5 billion to operating income of its
Express group.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
March 21, 2017 17:32 ET (21:32 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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