FedEx Sees First Earnings Decline Since 2009 on Economy |
| Bloomberg - Sep 5, 2012 |
FedEx Corp. (FDX) fell in U.S. trading after projecting its first quarterly earnings decline since 2009 as slowing economic growth hurt demand for the express packages that provide most of its sales.
A slump in Europe and slowing growth in Asia may have exposed a weakness of FedEx’s express business, which was built around customers willing to pay more for speed of delivery, said analysts from Sanford C. Bernstein & Co. and Raymond James & Associates Inc.
“The economy needs to get better,” said Arthur Hatfield, an analyst with Raymond James in Memphis, Tennessee. “We see some pent-up demand but corporations aren’t spending the money until they get clarity on where policies are going.”
The shares slid 2.1 percent to $85.73 at 9:36 a.m. in New York following yesterday’s forecast, the second one since June that trailed analysts’ projections. Memphis-based FedEx operates the world’s biggest cargo airline and is considered an economic bellwether because it moves goods ranging from financial documents to pharmaceuticals.
Read Full Article from Bloomberg
- Posted: 2012-09-05 11:07:27
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