An all-electric FedEx delivery truck is seen in San Diego, California September 24, 2013. REUTERS/Mike Blake
(Reuters) – U.S. package delivery company FedEx Corp (FDX.N) lowered its 2019 forecast, citing weakness in Europe, sending shares down 4.6 percent in after-market trading.
Memphis-based FedEx cut its fiscal 2019 earnings forecast to $15.50 to $16.60 per share, before year-end mark-to-market (MTM) retirement plan accounting adjustments and excluding TNT express integration expenses. It previously forecast earnings of $17.20 to $17.80 per share.
“While the U.S. economy remains solid, our international business weakened during the quarter, especially in Europe. We are taking action to mitigate the impact of this trend through new cost-reduction initiatives,” Frederick Smith, FedEx chief executive officer, said in a statement.
Net profit rose to $935 million, or $3.51 per share, for the second quarter ended Nov. 30, up from $775 million, or $2.84 per share, a year earlier.
Revenue rose to $17.8 billion from $16.3 billion.
FedEx shares fell $8.51 to $176.50 after the report.
Reporting by Lisa Baertlein in Los Angeles and Uday Sampath in Bengaluru; Editing by James Emmanuel and Matthew Lewis