FedEx cuts forecast as air freight weakness hits profit

FedEx Corp cut its full-year forecast after a worse-than-expected quarterly profit as customers shift from air express to slower but cheaper modes of international shipping.

The No. 2 US package-delivery company said it would step-up restructuring efforts, cut capacity in Asia and realign its global aircraft network to cut costs and boost earnings.

Shares of the company, which has cut its full-year earnings forecast twice in the last six months, fell more than 5 per cent in morning trading on the New York Stock Exchange on Wednesday.

via Business feed http://www.scmp.com/business/companies/article/1196096/fedex-cuts-forecast-air-freight-weakness-hits-profit