FedEx 3Q Net Down 75%; To Cut More Jobs, Sees 4Q Below Views

FedEx Corp. (FDX) announced plans to cut $1 billion of costs in the coming year as fiscal third-quarter net income plunged 75% on slumping demand.

The company, which is often considered a bellwether for the U.S. economy because of its massive shipping volume, didn't detail the amount of job cuts that would be part of the cost cutting. It will also reduce network capacity at its express and freight segments, cut back work hours and expand its compensation reductions to non-U.S. workers, where allowed.

FedEx's shares were down 5.9% at $40.50 in premarket trading as the latest quarter's results were well short of analysts expectations and the company also projected profit this quarter below estimates. Through Wednesday, the stock has lost one-third of its value this year.

Read Full Article from CNNMoney.com

- Posted: 2009-03-19 08:42:29

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