FedEx has raised its forecast for the first quarter ending August 31 thanks to the recent dropin fuel prices and ongoing cost savings, and reaffirmed its outlook for the full 2008-09 business
year.The company announced that it expects to report earnings of $1.23 per diluted share for thefirst quarter ended August 31. Previous earnings guidance was $0.80 to $1.00 per diluted share.
For fiscal 2009, the company reaffirmed its earnings guidance of $4.75 to $5.25 per dilutedshare, as weaker macroeconomic conditions offset better-than-expected first quarter results. Theoutlook assumes current fuel prices, FedEx noted.
“First quarter results benefitted from lower-than-expected fuel costs late in the quarter andstringent cost management,” said Alan B. Graf, Jr., executive vice president and chief financialofficer. “While sustained declines in fuel prices could improve our full-year outlook, the slowingeconomic growth trends in the US are now extending to other areas of the global economy. As aresult, we have reduced our planned capital investments by $400 million, to $2.6 billion for fiscal2009.”
FedEx also announced it would consolidate its meeting with investors and lenders that had beenscheduled 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 meetingin China is a wiser use of financial resources and a more efficient way to comprehensively updatethe investor community on our Asia-Pacific opportunities and our overall strategic outlook,” Grafsaid.
Additional information will be available on September 18, 2008, when the company releases a fullearnings report.
