- FedEx Corp. announced a loss in the fourth quarter of just under $ 2 billion.
- The company expects losses next year due to the Amazon's resignation as a partner, as well as reducing growth in the world economy.
DALLAS – FedEx Corp sent weak quarterly results in its core business and warned on Tuesday that earnings in the coming year will be harmed by slowing down global economic growth and deciding to drop a contract retail giant Amazon.
The delivery company reported a quarterly loss of nearly $ 2 billion. After adjusting for change in pension planning and other items that the company does not expect to repeat, the results were better than Wall Street expected.
FedEx launched a new fiscal year this month, and Chief Financial Officer Alan Graf said the company's performance, particularly at FedEx Express, was being harmed by continued weakness in global trade and industrial production.
This month, the company announced that it would not renew an air freight contract with Amazon that expires on June 30. It did not reveal the value of its work, but said that Amazon accounted for less than 1.3% of its revenue in 2018.
Commercial war tensions: Consumers are not optimistic about the US economy  FedEx also finds itself in the midst of a trade dispute between the United States and China. On Monday, the company sued the Commerce Department and attempted to stop it from enforcing export rules that restrict transfers to Chinese telecommunications equipment maker Huawei Technologies. Huawei was recently added a list of companies that were barred from receiving US technology without a special license from the Commerce Department.
In Q4, ending May 31, FedEx reported a $ 1.97 billion loss compared to $ 1.13 billion a year earlier.
Excluding what the company considered special goods, FedEx said the corrected result was $ 5.01 per share. While down from $ 5.91 a year earlier, the results hit expectations. The average of 11 analysts surveyed by Zacks Investment Research was $ 4.81 per share.
Revenue increased 3% to $ 17.81 billion, which met analysts' forecasts.
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The company's largest business, Express, had lower revenues from international priority packages, and the unit's Operating revenues increased by 12% on a 1% decline in sales.
FedEx Ground went into rising costs as it switched to a full-year plan six days a week. The company plans to go seven days a week from next January. FedEx, based in Memphis, Tennessee, reported a $ 540 billion profit on $ 69.69 billion in revenue.
FedEx shares fell $ 4.92, or 3.1%, to close Tuesday to $ 155.98 before the release of results. During extended trading after the financial results were released, the shares were $ 1.43 to $ 157.41.
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