News Summary: FedEx sees slower earnings growth

AP News
Posted: Jun 19, 2012 11:42 AM

SLOWER GROWTH: FedEx says slow global growth will crimp its earnings over the next 12 months, but it will offset any shortfall by cutting costs.

DITCHING PLANES: The world's second-largest package delivery company reported lower earnings for the fiscal fourth quarter. The bottom line was affected by a charge for retiring planes. The company is getting rid of some aircraft to slim down its express network. That's because more customers are choosing slower shipping to save money.

OUTLOOK DISAPPOINTS: The company's forecast for the first quarter and fiscal year fell below Wall Street expectations. FedEx is expecting higher costs, including salaries and pension, to constrain its earnings through next spring. Cost cuts to be announced this fall aren't included in its prediction.