FedEx posts weaker financial results, citing global trade weaknessStaff Writer | March 20, 2019
FedEx reported quarterly financial results that were below expectations, saying that a weakness in global trade took a toll on its revenue growth.
FedEx Net income was 739 million U.S. dollars for its third quarter
For the same period a year earlier, net income was 2.07 billion dollars, with diluted earnings per share at 7.59 dollars.
"Our third quarter financial results were below our expectations and we are focused on initiatives to improve our performance," said Frederick Smith, chairman and chief executive officer of FedEx.
FedEx said a recent slowdown in the global economy and trade hurt its top line.
"Slowing international macroeconomic conditions and weaker global trade growth trends continue, as seen in the year-over-year decline in our FedEx Express international revenue," said Alan B. Graf Jr., executive vice president and chief financial officer of FedEx.
FedEx's shares dropped 0.54 percent to 181.41 dollars at the close of trading at the New York Stock Exchange on Tuesday.
"We have launched our voluntary employee buyout program, constrained our hiring, are limiting discretionary spending and are reviewing additional actions to mitigate the lower-than-expected revenue trends," said Graf.
"Our investments in innovation, network infrastructure and automation will increase our competitiveness and drive long-term earnings growth," said Smith. "FedEx built and operates the preeminent global parcel and logistics network, and we have a lengthy track record of success." ■