FedEx Disappointing earnings

Learn Forex News : The low growth in the world economy and increasing competitive climate managed to hit the financial statements of FedEx performance in the first quarter of 2013. 2 largest package delivery company in the U.S. reported a net profit of $ 521 million to $ 361 million. FedEx also decreased EPS (earnings per share) from $ 1.55 to $ 1.23;'s also lower than the analyst estimate of $ 1.38. FedEx shares fell 3% to $ 103.00 after the company released its financial statements.

"Business conditions quite challenging, especially with the continued weakness in international freight segment, industry overcapacity, and consumers become more selective in sending the package," said CEO Frederick W. Smith. FedEx has announced a restructuring program worth $ 1.7 billion and from 1 April FedEx will reduce its capacity in Asia and manage the delivery of a more efficient level.