FedEx Corporation 'negatively' affected by 'weakening global macro environment'

FedEx Corporation chairman and CEO Frederick W Smith reported (17-Sep-2019) the company's operating results for the three months ended 31-Aug-2019 were "negatively impacted by a weakening global macro environment driven by increasing trade tensions and policy uncertainty". FedEx's operating results were also damaged by the loss of business from a large customer, one less operating day, increased costs to expand service offerings and continued mix shift to lower yielding services. These outcomes were partially offset by lower variable incentive compensation expenses, revenue growth at FedEx Ground and higher yields at FedEx Freight. Mr Smith noted the company is positioning itself to "leverage future growth opportunities as we continue the integration of TNT Express, enhance FedEx Ground residential delivery capabilities and modernise the FedEx Express air fleet and hub operations". [more - original PR]