Jupiter Kalambakal - AHN News Writer
Memphis,TN (AHN) - The second biggest U.S. shipping company, FedEx Corp. on Friday adjusted its fourth quarter profit outlook by at least $100 million to reflect losses caused by steep oil costs.
In a statement, FedEx projected earnings will be $1.45 to $1.50 a share in the quarter ending May 31, compared with its earlier target of $1.60 to $1.80.
Bloomberg said this is the second time FedEx lowered its earnings forecast due to skyrocketing crude prices- which has since breached the $125 per barrel marker.
Fuel is FedEx's second-biggest operations expense after labor. Bloomberg said the company's fuel expense reached $1.18 billion in the third quarter - where it reported a six percent drop in earnings.
According to the Associated Press, FedEx officials have declined further comment on earnings expectations, saying the annual report will be delivered on June 18.
"We're in a quiet period," said spokesman Jess Bunn to AP. FedEx shares fell more than 3 percent, it was down to $90.37 on Friday.
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