FedEx Q3 Profit Drops, Plans More Cost Cutting
FedEx has reported a dip in profit in its fiscal Q3 2013 results. For the quarter, revenue was $11.0 billion, a 4% increase from the $10.6 billion in the same period the previous year. But net income was significantly lower, coming in at $361 million ($1.13 per diluted share), or 31% below Q3 2012's $521 million ($1.55).
Going forward, the company said it anticipates $1.90-$2.10 diluted EPS for Q4, and $6.00-$6.20 for the full year. Those numbers, however, don't include business realignment costs. These bring the figures down to $0.94-$1.34 and $4.91-$5.31, respectively.
FedEx said it's planning additional cost-cutting measures in its key express shipping division. According to the company, there is a persistent trend away from priority shipping, as opposed to the cheaper "economy" variety.
The article FedEx Q3 Profit Drops, Plans More Cost Cutting originally appeared on Fool.com.Fool contributor Eric Volkman has no position in FedEx. The Motley Fool recommends FedEx. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.