(Finance) – FedExone of the largest transport and freight forwarding companies in the world, has withdrawn earnings forecasts for fiscal year 2023 delivered on June 23, 2022, after weak performance in the first quarter of the fiscal year (ended August 31, 2022). The results of the last three months have been negatively affected by the weakness of global volumes, accelerated in the last weeks of the quarter, explained the US giant. In particular, FedEx Express’s results were particularly impacted by macroeconomic weakness in Asia and service challenges in Europe, leading to a decline in revenues in this segment of approximately $ 500 million compared to the company’s forecasts. FedEx Ground revenue was approximately $ 300 million below the company’s forecasts.
“Global volumes declined as macroeconomic trends worsened significantly later in the quarter, both internationally and in the US. We are tackling these headwinds quickly, but given how quickly conditions changedfirst quarter results are below our expectations, “said CEO Raj Subramaniam.
“Although this performance is disappointing, we are aggressively accelerating cost reduction efforts and evaluating additional measures to improve productivity, reduce variable costs and implement structural cost-cutting initiatives – he added – These efforts are in line with the strategy we outlined in June and I remain confident in achieving our financial goals for fiscal year 2025 ” .
The company plans a further weakening of the commercial conditions in second quarter. For the second quarter of fiscal year 2023, FedEx currently expects revenue between $ 23.5 billion and $ 24.0 billion, diluted earnings per share of $ 2.65 or more, and diluted earnings per share excluding costs related to business optimization initiatives and business realignment activities of $ 2.75 or more.