Fedex business is closely tied to the economy and the domestic growth doesn’t appear to be heading up resulting in the cut in forecast due to two reasons, weak USA economy as well as high fuel costs both cut into FedEx profits. The very same reason that high fuel costs cuts into nearly every segment of the USA economy. Fedex being an extremely efficient company suffered enough to cut its forecast, we can expect normal companies to suffer even more. The softening of the USA economy hopefully will bring down the oil prices which in turn will lessen the inflation impact on the rank and file.
FedEx cuts 4Q profit forecast
By Finance in FedEx cuts 4Q profit forecast
May
10