FEDEX Corp has reported profits below analyst expectations, citing that cost cuts were insufficient to compensate for volume declines in the air-freight unit amid an ongoing cargo recession, reports Bloomberg News.
The company has revised its sales forecast for the financial year ending May 31, with adjusted earnings at US$3.99 per share, falling short of analysts' expectations of $4.19.
Sales experienced a 2.6 per cent decline to $22.2 billion, compared to the anticipated $22.4 billion.
fedex Express, the air freight unit, continues to grapple with overcapacity issues as commercial airliners resume international flights, coupled with sluggish demand in Asia.
The company's freight unit, a significant player in the US trucking industry, has suffered from reduced cargo demand and pricing challenges.
However, some offsetting relief was provided by cargo picked up from Yellow Corp, which ceased operations earlier this year.
'The miss was driven solely by Express,' said Citigroup analyst Christian Wetherbee.
SeaNews Turkey
The company has revised its sales forecast for the financial year ending May 31, with adjusted earnings at US$3.99 per share, falling short of analysts' expectations of $4.19.
Sales experienced a 2.6 per cent decline to $22.2 billion, compared to the anticipated $22.4 billion.
fedex Express, the air freight unit, continues to grapple with overcapacity issues as commercial airliners resume international flights, coupled with sluggish demand in Asia.
The company's freight unit, a significant player in the US trucking industry, has suffered from reduced cargo demand and pricing challenges.
However, some offsetting relief was provided by cargo picked up from Yellow Corp, which ceased operations earlier this year.
'The miss was driven solely by Express,' said Citigroup analyst Christian Wetherbee.
SeaNews Turkey