FedEx Tumbles as New Cut to Profit Forecast Signals `Lost Year'
- Ground results are surprisingly weak following investments
- Integration of TNT Express acquisition continues to weigh
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FedEx Corp. tumbled as a new cut to its earnings outlook stoked Wall Street concerns over the courier’s ability to navigate a global slowdown and cash in on surging e-commerce.
Overseas demand is softening amid U.S.-China trade tensions and uncertainty over the U.K.’s exit from the European Union, FedEx said as it reported earnings. More surprising was weakness at the company’s U.S. ground business, which struggled with higher costs from harsh winter weather, the shift to a six-day delivery schedule and an increase in less profitable residential shipments.