Fedex swings to loss on charge, fuel, economy

FedEx Corp. said Wednesday that it swung to a fiscal fourth-quarter loss from a year-earlier profit, reflecting a $696 million after-tax asset-impairment charge tied to the acquisition of Kinko's and hurt by the surge in fuel prices and the weak U.S. economy.

The Memphis, Tenn.-based shipping business, sometimes referred to as a bellwether for the economy, also provided a first-quarter and fiscal 2009 outlook below Wall Street expectations. That helped to send shares tumbling nearly 5% in premarket trading to $80.71.

For the quarter ended May 31, FedEx posted a loss of $241 million, or 78 cents a share, compared with profit of $610 million, or $1.96 a share, in the year-earlier period. The operating loss was $163 million compared with operating profit of $1.01 billion a year earlier.

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- Posted: 2008-06-18 08:52:21

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