FedEx Corp. first quarter earnings expected to exceed guidance

FedEx Corporation announced that it expects to report earnings of USD 1.23 per diluted share for the first quarter ended August 31. Previous earnings guidance was USD 0.80 to USD 1.00 per diluted share. For fiscal 2009, the company reaffirmed its earnings guidance of USD 4.75 to USD 5.25 per diluted share, as weaker macroeconomic conditions offset better-than-expected first quarter results. This outlook assumes current fuel prices.
“First quarter results benefitted from lower-than-expected fuel costs late in the quarter and stringent cost management,” said Alan B. Graf, Jr., Executive Vice President and Chief Financial Officer. “While sustained declines in fuel prices could improve our full-year outlook, the slowing economic growth trends in the U.S. are now extending to other areas of the global economy. As a result, we have reduced our planned capital investments by USD 400 million, to USD 2.6 billion for fiscal 2009.”

FedEx Corporation announced that it expects to report earnings of USD 1.23 per diluted share for the first quarter ended August 31. Previous earnings guidance was USD 0.80 to USD 1.00 per diluted share. For fiscal 2009, the company reaffirmed its earnings guidance of USD 4.75 to USD 5.25 per diluted share, as weaker macroeconomic conditions offset better-than-expected first quarter results. This outlook assumes current fuel prices.
“First quarter results benefitted from lower-than-expected fuel costs late in the quarter and stringent cost management,” said Alan B. Graf, Jr., executive vice president and chief financial officer. “While sustained declines in fuel prices could improve our full-year outlook, the slowing economic growth trends in the U.S. are now extending to other areas of the global economy. As a result, we have reduced our planned capital investments by USD 400 million, to USD 2.6 billion for fiscal 2009.”
FedEx also announced it would consolidate its meeting with investors and lenders that had been scheduled for October 2 in New York City with a meeting planned for April 1-2, 2009 in Guangzhou, China, where its state-of-the-art Asia-Pacific hub will be unveiled. “A consolidated April meeting in China is a wiser use of financial resources and a more efficient way to comprehensively update the investor community on our Asia-Pacific opportunities and our overall strategic outlook,” Graf said.