FedEx lowers outlook for the year amid tight labor market, rising expenses

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 28 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 14%
  • Publisher: 97%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

FedEx cites labor crunch and rising costs in reducing full-year forecast

FedEx Corp. shares fell more than 3% in extended trading Tuesday after the shipping and logistics company lowered its outlook for the year, saying that the cost of doing business rose more than it expected thanks to supply-chain disruptions and a tight labor market.

“The execution of our strategies continues to drive higher demand for our services, despite the disruptive impact of the pandemic to labor availability and global supply chains,” Chief Executive Frederick W. Smith said in a statement. FedEx has been in the “unusual position of turning away customers and capping customer volume,” said Patrick Donnelly, an analyst with Third Bridge.

Moreover, conditions during the first quarter “were more challenging than anticipated and are now expected to extend longer,” the company said.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stocks making the biggest moves premarket: General Mills, FedEx, Adobe and moreThese are the stocks posting the largest moves in early morning trading.
Source: CNBC - 🏆 12. / 72 Read more »