MEMPHIS, Tenn. (
(FDX - Get Report)
has cut back its current quarter guidance due to severe weather and rising fuel prices.
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
the full year
. FedEx said it will update full-year guidance when it reports earnings on March 17.
FedEx announced the new guidance shortly after the close on Monday. In extended trading, shares were trading down 67 cents to $93.32. In regular-day trading, FedEx stock lost $1.43 to close at $93.99. The new guidance could conceivably impact the broader market, given mounting fears about
rising commodity costs.
-- Written by Ted Reed in Charlotte, N.C.
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