Economy, fuel expenses hurt FedEx
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FedEx Corp. predicted that its profit would be back on track for its current fiscal year even though higher fuel costs and a sluggish U.S. economy sent net income down 6% in its latest quarter.
For the fiscal second quarter ended Nov. 30, the economic slowdown was tempered by an expansion overseas that is expected to boost future earnings. Memphis, Tenn.-based FedEx earned $479 million, or $1.54 a share, in the quarter, down from $511 million, or $1.64, a year earlier.
FedEx met its own expectations for the quarter after lowering them last month to a range of $1.45 to $1.55, down from an earlier estimate of $1.60 to $1.75.
Analysts surveyed by Thomson Financial had expected $1.50 a share.
Revenue for the period rose 6% to $9.45 billion from $8.93 billion a year earlier. Analysts had expected $9.32 billion.
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