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FedEx Slashes Earnings Forecast, Citing Slowdowns in Asia and Europe

FedEx said in a statement on Thursday that it expected to report that its profit shrank in the latest quarter, a decrease the shipping giant attributed to a broader slowdown of the global economy, sending the company’s stock price sharply lower.

In a preliminary financial statement for the quarter, which ended Aug. 31, FedEx said the profit it generated, $1.19 billion, was down 15 percent compared with the same period last year. The company also withdrew its earnings forecast for the year, a sign of further volatility in the shipping industry.

Factors affecting FedEx’s business included “macroeconomic weakness in Asia and service challenges in Europe,” the company said in the statement. Among the potential risks to future business, FedEx cited the war in Ukraine and the continuing effects of the coronavirus pandemic.

“We are swiftly addressing these headwinds, but given the speed at which conditions shifted, first-quarter results are below our expectations,” Raj Subramaniam, FedEx’s chief executive, said in a statement. The company did not immediately respond to requests for comment.


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