FedEx reported a sharp decline in quarterly profits and lowered its full-year revenue forecast as customers shifted from faster, expensive deliveries to cheaper alternatives. FedEx CEO Raj Subramaniam cited softer industrial demand as shipments between manufacturers, FedEx’s most profitable segment, declined. Cost cuts from restructuring and merging Ground and Express units failed to offset falling demand. Shares fell nearly 11% in after-hours trading, impacting UPS stock by 2.5%.
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00:00It's Benzinga, and here's what's on the block.
00:02FedEx reported a sharp decline in quarterly profits and lowered its full-year revenue
00:06forecast as customers shifted from faster, expensive deliveries to cheaper alternatives.
00:11FedEx CEO Raj Subramaniam cited softer industrial demand as shipments between manufacturers,
00:17FedEx's most profitable segment, declined.
00:20Cost cuts from restructuring and merging ground and express units failed to offset falling
00:24demand.
00:25Investors fell nearly 11 percent in after-hours trading, also impacting UPS stock by 2.5 percent.
00:30For all things money, visit Benzinga.com.