FedEx cuts fiscal year forecast on slowing growth

By SAMANTHA BOMKAMP | September 22, 2011 | 8:00 AM EDT

NEW YORK (AP) — FedEx is cutting its earnings expectations for the fiscal year ending in May due to slowing global economic growth.

The Memphis, Tenn. company said Thursday it now expects to earn between $6.25 and $6.75 per share for fiscal 2012, compared with a previous estimate of $6.35 to $6.85 per share. FactSet says analysts expect $6.39 per share.

For the fiscal first quarter that ended in August, FedEx Corp. says increased truck shipments helped to offset slower economic growth, which especially hurt its express unit. Net income rose 22 percent to $464 million, or $1.46 per share, compared with $380, or $1.20 per share, a year earlier.

Revenue rose 11 percent to $10.52 billion.

Analysts expected a profit of $1.46 per share on revenue of $10.32 billion.