FedEx Q1 profit to exceed expectations

Source: Supply Chain Digital

Date :9/9/2008 11:30:34 PM

FedEx Corp said it will report a better-than-expected profit of US$1.23 a share for the quarter ended August 31, helped by falling fuel costs.

Earnings had been projected to be 80 cents to US$1 a share in the first quarter, the logistics services company said. Analysts expected 95 cents a share.

FedEx reaffirmed its full-year profit forecast of US$4.75 to US$5.25 a share, saying “weaker macroeconomic conditions” will temper the quarterly gain.

"While sustained declines in fuel prices could improve our full-year outlook, the slowing economic growth trends in the US are now extending to other areas of the global economy,” Chief Financial Officer Alan Graf said.

To save money, the firm is reducing incentive compensation, trimming capital investment and paring discretionary spending.

FedEx will announce its quarterly earnings on September 18.