FedEx bracing for slowing global economies and earnings growth; 4Q results top estimates | iNFOnews | Thompson-Okanagan's News Source

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FedEx bracing for slowing global economies and earnings growth; 4Q results top estimates

In this Friday, May 11, 2012, file photo, FedEx workers sort boxes for delivery as they are unloaded from a FedEx truck in New York. FedEx Corp. said Tuesday, June 19, 2012, that slow global growth will crimp its earnings results over the next 12 months, but it’s vowing to make significant cost cuts to make up for any shortfall.(AP Photo/Mark Lennihan)
June 19, 2012 - 8:03 AM

NEW YORK, N.Y. - FedEx says higher costs and slow global growth will crimp its earnings results over the next 12 months.

The world's second-largest package delivery company is reporting lower results for the fiscal fourth quarter ended in May due to a charge for retiring some planes.

FedEx earned $550 million or $1.73 per share in the last quarter, compared with $558 million, or $1.75 per share, a year earlier. Revenue rose to $11 billion from $10.55 billion.

Without the charge, FedEx would have earned $1.99 per share, 4 cents better than Wall Street estimates.

But the Memphis, Tenn. company's forecast for the first quarter and fiscal year fell below Wall Street's expectations and its stock fell about 2 per cent on Tuesday before the opening bell.

News from © The Associated Press, 2012
The Associated Press

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