FedEx: Weak economy will offset DHL departure

FedEx Corp. said it is reducing its earning estimates for its current fiscal year as significantly weaker macroeconomic conditions are expected to offset the benefits from lower fuel prices and the announced departure of DHL from the U.S. domestic package market.

   The revised earning estimates are $3.50 to $4.75 per diluted share from the previous guidance of $4.75 to $5.25. This outlook assumes stable fuel prices, the express giant said.

   Second quarter results benefited from rapidly declining fuel prices and continued cost management, said Alan B. Graf, Jr., executive vice president and chief financial officer. However, demand for our services weakened sequentially throughout the quarter and global economic trends continue to worsen, substantially reducing our second half outlook.

Source: American Shipper