FedEx 2Q earnings fall on weak air segment, Sandy

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Associated Press

Posted on December 19, 2012 at 8:00 AM

Updated Wednesday, Dec 19 at 8:02 AM

NEW YORK (AP) — FedEx, the world's second-largest package delivery company, says its profit slid 12 percent in the second-quarter on weakness in its air network and the impact of Superstorm Sandy.

The Memphis, Tenn., company maintained its forecast for the full fiscal year ending in May, hoping that a strong holiday season and a massive cost cutting plan will offset global economic weakness.

FedEx Corp. posted earnings of $438 million, or $1.39 per share on Wednesday, compared with $497 million, or $1.57 per share, a year ago. Superstorm Sandy cut earnings by 11 cents per share by driving down shipping volume and increasing costs.

Revenue rose to $11.1 billion from $10.6 billion previously.

Analysts forecast earnings of $1.41 per share on revenue of $10.84 billion, according to FactSet.

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