Pensions blamed for FedEx profit forecast
- Latest News
- Friday, 18 June 2010
Earnings for the fiscal year from June 1 will be US$4.40 to US$5 a share, the Tennessee, USA-based company said.
The company blamed higher pension expenses and spending on restored contributions to employee retirement accounts plus raises, after halting both in the recession.
FedEx added that its forecast was based on stable fuel prices and "a continued moderate recovery".
"We expect the growth in earnings to be constrained by significant increases in labour-related costs as well as for aircraft maintenance," cfo Alan Graf said.
