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Oh boy!
MEMPHIS, Tenn. (AP) -- FedEx Corp. reported a fourth-quarter loss Wednesday and offered a gloomy outlook as it wrestles with a slumping U.S. economy beset by soaring fuel costs and falling prices for homes.
FedEx, considered a bellwether for the broader U.S. economy, predicted 2009 earnings of $4.75 to $5.25 per share, well below Wall Street expectations of $5.92 a share. The international package delivery company expects to earn 80 cents to $1 per share in the first-quarter of the current fiscal year. Analysts forecast $1.27 per share.
"Looking ahead to '09, we do expect conditions to remain extremely challenging and we anticipate in both the first quarter guidance and the yearly target the current economic weakness will continue and the current level of fuel costs will not mitigate," chief financial officer Alan Graf said in a conference call with market analysts.
FedEx posted a loss for the just-ended fourth period of 78 cents a share, or $241 million, compared with a profit of $610 million, or $1.96 per share, for the same quarter last year.
Excluding one-time charges, FedEx earned $1.45 per share for the fourth quarter. Revenue rose 8 percent to $9.87 billion from $9.15 billion a year earlier.
Analysts polled by Thomson Financial expected $1.47 per share on revenue of $9.6 billion.
"The weak U.S. economy, particularly in housing, in automotive and financial services, dampened volume growth and substantially affected our bottom line," FedEx chairman Frederick W. Smith said.
Smith said, however, that FedEx was confident it could weather the domestic economic troubles by holding down expenses, limiting capital spending and continuing to grow the company's international business.
Fourth-quarter earnings included a one-time charge of $891 million for the expected costs of renaming the company's office service and copying division from FedEx Kinko's to FedEx Office.
FedEx had predicted fourth-quarter earnings of $1.45 to $1.50 a share. That projection was lowered last month from earlier company guidance of $1.60 to $1.80 a share, due largely to rising fuel costs.
For 2008, FedEx reported earnings of $3.60 a share, down 44 percent from $6.48 the previous years. Yearly revenue was put at $38 billion, up 8 percent from $35.2 billion.
FedEx shares fell $2.33, or 2.8 percent, to $82.00 in morning trading.
FedEx, considered a bellwether for the broader U.S. economy, predicted 2009 earnings of $4.75 to $5.25 per share, well below Wall Street expectations of $5.92 a share. The international package delivery company expects to earn 80 cents to $1 per share in the first-quarter of the current fiscal year. Analysts forecast $1.27 per share.
"Looking ahead to '09, we do expect conditions to remain extremely challenging and we anticipate in both the first quarter guidance and the yearly target the current economic weakness will continue and the current level of fuel costs will not mitigate," chief financial officer Alan Graf said in a conference call with market analysts.
FedEx posted a loss for the just-ended fourth period of 78 cents a share, or $241 million, compared with a profit of $610 million, or $1.96 per share, for the same quarter last year.
Excluding one-time charges, FedEx earned $1.45 per share for the fourth quarter. Revenue rose 8 percent to $9.87 billion from $9.15 billion a year earlier.
Analysts polled by Thomson Financial expected $1.47 per share on revenue of $9.6 billion.
"The weak U.S. economy, particularly in housing, in automotive and financial services, dampened volume growth and substantially affected our bottom line," FedEx chairman Frederick W. Smith said.
Smith said, however, that FedEx was confident it could weather the domestic economic troubles by holding down expenses, limiting capital spending and continuing to grow the company's international business.
Fourth-quarter earnings included a one-time charge of $891 million for the expected costs of renaming the company's office service and copying division from FedEx Kinko's to FedEx Office.
FedEx had predicted fourth-quarter earnings of $1.45 to $1.50 a share. That projection was lowered last month from earlier company guidance of $1.60 to $1.80 a share, due largely to rising fuel costs.
For 2008, FedEx reported earnings of $3.60 a share, down 44 percent from $6.48 the previous years. Yearly revenue was put at $38 billion, up 8 percent from $35.2 billion.
FedEx shares fell $2.33, or 2.8 percent, to $82.00 in morning trading.