FedEx Lowers Outlook |
| Wall Street Journal - Sep 22, 2011 |
Weak demand from consumers in the U.S. and Europe for electronics manufactured in China has sapped strength from international air-freight volumes, a stark illustration of the slowdown in global trade.
FedEx Corp. posted improved earnings for its fiscal first quarter Thursday, but the world's largest air-cargo carrier reduced its full-year profit guidance, echoing recent warnings that Asian shipments have been particularly weak.
"We were on track for [Asian volume] growth in June, and then in July we saw a sudden deceleration that continued all through August," FedEx Chief Financial Officer Alan B. Graf Jr. said. "There's been no real pickup" since then, he added.
His comments echo those from rival United Parcel Service Inc., which said last week that it also has seen a "fairly recent" dip in Asian volumes. Other sector observers have forecast weakening demand as well, with the International Air Transport Association warning this week that the softness could last until the middle of next year.
Read Full Article from Wall Street Journal
- Posted: 2011-09-22 13:33:22
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