MEMPHIS, TN (WMC) - Memphis-based FedEx reported lower profits this quarter.
Chairman and CEO Fred Smith called the results “disappointing.”
Company executives are in part blame weak global trade.
FedEx shared results in a conference call Tuesday.
We sat down with Memphis Business Journal's Meagan Nichols, who says there's no denying it was a bad quarter for FedEx.
This is the second time the Memphis-based shipping giant has slashed its outlook for full year earnings.
The net income in this most recent quarter of more than $700 million is more than a 20 percent drop from the prior year.
This news sent stocks slipping Wednesday.
Nichols says FedEx leaders don't want to focus on just one quarter. They're looking at the long-term health of the company, of which they are optimistic.
"It's not a big surprise that the uncertainty and the global economy with Brexit, with China trade disputes did impact FedEx's international business this quarter,” Nichols said.
Smith said the results were below expectations but that investments in infrastructure and automation will help in the long run.
Next month, FedEx is expected to know how many U.S. employees will leave the company through voluntary buyouts.