FedEx Raises Full-Year Earnings Forecast After Cost Cuts
FedEx Corp on Thursday raised its fiscal 2023 profit forecast despite weak market conditions, citing progress on its plan to shave $3.7 billion in costs from its global delivery business.
The Memphis, Tennessee-based company also posted a higher-than-expected quarterly profit despite a drop in volume.
Fedex has been wringing costs from its bloated operations by shuttering offices, cutting jobs, reducing flights, grounding airplanes and canceling profit-sapping Sunday deliveries in far-flung areas.
It faces a balancing act of matching costs and capacity with waning demand for its services in an economy threatened by the war in Ukraine, bank failures and growing recession concerns.
“Our cost actions are taking hold, driving an improved outlook for the current fiscal year,” Chief Executive Raj Subramaniam said in a statement….