Victim of Hyper Oil Price
Fuel prices flatten FedEx
Fuel prices are killing FedEx. The freight company cut its fourth-quarter earnings forecast, citing a 7% rise in fuel prices since it made its last projection back in March. FedEx said it now expects to make $1.45-$1.50 a share, down from the previous forecast of $1.60 to $1.80 a share. FedEx said the weak economy “has restrained demand for U.S. domestic express package and LTL freight services,” but saved its strongest words for the surge in fuel costs driven by crude oil’s recent run to around $125 a barrel.
“While we have dynamic fuel surcharges in place, they cannot keep pace in the short-term with rapidly rising fuel prices,” finance chief Alan Graf said. “This revised outlook assumes no additional increases to the current fuel price environment and no further weakening of the economy.” Shares fell 4% in postclose trading.
Source fortune.cnn.com
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