Upon news that FedEx cut its earning expectations for the year, shares of the company sank almost 5 percent during morning trading [Friday].
The company, citing rising fuel costs, said that earnings per individual shares would be 20 cents lower than previously expected. Analysts had forecast an earning of $1.60 to $1.75 per share for the second quarter ending November 30th. Now FedEx expects to earn $1.45 to $1.55 per share.
Since September, the company’s fuel costs have risen more than 8 percent, roughly $85 million. A FedEx spokesman said that the company would be taking steps to reduce expenses and is reviewing its capital investment plans.
