Business News
FedEx profit falls on winter storms, slow economy
Mar 21, 2007, 18:15 GMT
New York - US package shipping company FedEx Corp reported a drop in third-quarter profits Wednesday for the first time in three years, blaming the fall on a slowing US economy and winter storms that disrupted services and reduced demand.
The Memphis, Tennessee-based company said profits fell 2 per cent to 420 million dollars in the third fiscal quarter, from 428 million dollars in the year-earlier period. Revenue climbed 7 per cent to 8.59 billion dollars.
'The US economy grew at a lower rate than we expected in the third quarter, and we saw continued adjustments in the automotive and housing markets,' Chief Executive Officer Fred Smith said.
US economic growth slowed to a 2.2 per cent annual rate in the last three months of 2006.
Shares in FedEx dropped 1.9 per cent to 110.16 dollars in afternoon trading on Wall Street Wednesday.
© 2007 dpa - Deutsche Presse-AgenturCOMMENT
blog comments powered by DisqusLatest Headlines in Business
- 1. US unemployment drops further, but figures disappoint
- 2. Japan stocks down as euro debt outweighs positive US data
- 3. Iraq resumes oil flow after pipeline blast in Turkey
- 4. Spanish bond auction lifts eurozone worries, sinks Japan stocks
- 5. ECB holds rates, rules out early exit from emergency measures
Older Talkback
