FedEx Corp. reported higher revenue but lower profits in the third quarter of fiscal 2019 and cut its earnings forecast for the remainder of the year.
The company tempered its outlook due to a slowdown in international shipping and costs associated with business realignment activity in the U.S., and ongoing integration expenses in Europe related to the company’s acquisition of TNT Express in 2016.
The Memphis, Tenn.-based parcel, freight and logistics service provider posted adjusted net income of $797 million, or $3.03 a share, in the three months ended Feb. 28, compared with $1.02 billion, or $3.72 a share, in the same period a year ago. Revenue increased 3% to $17 billion from $16.5 billion.
“Our financial results were below our expectations and we are focused on initiatives to improve our performance,” said Fred Smith, chairman and CEO, in a statement that was released after the market closed on March 19.
FedEx said it was taking a number of actions to counter the weakness in global trade, including offering buyouts to certain employees and cutting back on hiring.