FedEx Cutting 1,700 Jobs After Doubling 1Q Profit

By Staff | September 16, 2010 | 9:03 AM EDT

New York (AP) - FedEx says its fiscal first-quarter earnings doubled and the company will cut 1,700 jobs as it consolidates its trucking operations to save money.

The company is also boosting its quarterly per share outlook to between $1.15 and $1.35, from $1.05 to $1.25.

The Memphis, Tenn., company earned $380 million, or $1.20 per share, compared with $181 million, or 58 cents per share a year ago.

Revenue rose 18 percent to $9.46 billion.

FedEx will combine its FedEx Freight and FedEx National LTL operations on Jan. 30, closing 100 facilities and cutting 1,700 workers. FedEx Corp. says the move, along with other cost cuts, will ensure it's profitable next year.

FedEx shares fell $2.27, or 2.6 percent, to $83.67 in pre-market trading.