FedEx Reports 36% Decline in Profit
Associated Press
FedEx Corp., the world’s largest cargo airline, reported a 36% drop in profit for its fiscal first quarter ended Aug. 31, to $109 million, or 36 cents a share, in part because the flat economy weakened demand in the manufacturing and high-tech sectors for its premium services.
The results, which include a charge of 5 cents a share related to an accounting change, exceeded analysts’ expectations of 31 cents, according to Thomson Financial/First Call.
Revenue grew 5% to $5.04 billion, helped by the acquisition of American Freightways.
Shares of Memphis-based FedEx rose 12 cents to $34.95 on the New York Stock Exchange.
