FedEx raises its full-year earnings forecast after cost cuts

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FedEx shares were up more than 11% after it posted a higher-than-expected quarterly profit despite a drop in volume

on Thursday raised its fiscal 2023 profit forecast despite weak market conditions, citing progress on its plan to shave $3.7-billion in costs from its global delivery business, sending its shares up more than 11 per cent.

Fedex has been wringing costs from its bloated operations by shuttering offices, cutting jobs, reducing flights, grounding airplanes and cancelling profit-sapping Sunday deliveries in far-flung areas. “Our cost actions are taking hold, driving an improved outlook for the current fiscal year,” Chief Executive Raj Subramaniam said in a statement.

 

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