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FedEx warns of worsening economy and pulls forecast; shares drop 16%

FedEx workers sort packages in Manhattan, New York City, U.S., May 9, 2022. REUTERS/Andrew Kelly

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Sept 15 (Reuters) – FedEx Corp on Thursday withdrew the financial forecast it issued just three months ago, saying a global demand slowdown accelerated at the end of August and was on pace to worsen in the November quarter.

Shares in the global delivery firm tumbled more than 16% after it also reported revenue and profit for the first-quarter ended Aug. 31 that missed Wall Street targets. S&P 500 futures fell on Thursday as FedEx added to worries about a slowing global economy. read more

Altogether, a worldwide slowdown in economic activity caused shortfalls in FedEx Express revenues of $500 million and FedEx Ground revenues of $300 million in the quarter, FedEx said.

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FedEx said it was cutting costs including shutting…

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