Transportation
FedEx Slumps as Lowered Outlook Offers Economic Warning Sign
- Shipping giant cuts top end of full-year earnings forecast
- Company’s CEO cites ‘challenging quarter’ on weaker demand
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FedEx Corp. tumbled the most in two years after warning that its business would slow in the year ahead, an ominous sign about the direction of the US economy.
The parcel giant was hurt by a pullback on priority services as customers traded down to cheaper shipping options in what Chief Executive Officer Raj Subramaniam called “a challenging quarter.” A broad effort to slash costs gained traction but only partially blunted those headwinds, the Memphis-based company said late Thursday.