The company cut guidance by 25 cents. "We experienced significant network disruptions in the U.S. and Europe and unusually high costs from severe winter storms," said CFO Alan Graf, in a prepared statement. "In addition, fuel prices continued to escalate since we provided our earnings outlook in December."
Graf added, however, that "We continue to see strength in our base business across all transportation segments and geographies."
For the fiscal third quarter, which ends Feb. 28, FedEx now expects adjusted earnings of 70 cents to 90 cents a share. Previous guidance was 95 cents to $1.15 a share.The costs will also impact guidance for
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