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A Blow To FedEx Is Going To Be Delivered By Amazon Which Just Lost $2 Billion

A Blow To Fedex Is Going To Be Delivered By Amazon Which Just Lost $2 Billion

FedEx Corp. posted weak quarterly results in its core express business and warned on  Tuesday that its profit in the year ahead will be destroyed by slowing growth in the world economy and the decision to drop a contract with retail giant Amazon.

The delivery company announced a quarterly loss of nearly $2 billion. After adjusting for a change in pension-plan accounting and other items that the company doesn’t expect will repeat, however, the results were better than Wall Street anticipated.

FedEx started a new financial year this month, and Chief Financial Officer Alan Graf said the company’s performance, especially at FedEx Express, is being damaged by continued weakness in global trade and industrial production.

The company declared this month that it would not replace an airfreight-delivery contract with Amazon that expires on June 30. It did not reveal the value of that work but said Amazon accounted for less than 1.3% of its revenue in 2018.FedEx also finds itself in the middle of a trade dispute between the U.S. and China. On Monday, the company claimed the Commerce Department, trying to stop it from making export rules that restrict shipments to Chinese telecommunications devices maker Huawei Technologies. Huawei was recently added to a list of companies barred from receiving U.S. technology without a special license from the Commerce Department.

In the fiscal fourth quarter, which ended on May 31, FedEx reported a loss of $1.97 billion, compared with a profit of $1.13 billion a year earlier.

Excluding what the company considered special items, FedEx said adjusted profit was $5.01 per share. While down from $5.91 a year earlier, the results beat expectations. The average estimate of 11 analysts surveyed by Zacks Investment Research was for $4.81 per share.

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Ethane Eddington

Ethane Eddington

I have always had a passion for writing and I bring that passion into my copywriting business. Whether you want the copy writing for an entire website or a simple proofread and edit, I will make sure I bring you the best results I can in as short a time as possible. I have a long back-catalogue of writing experience – I have been an editor of a sports website, I have an NCTJ qualification in journalism and I have written for a news website. I have also gained a Diploma with Merit in copywriting from the Institute of Copywriting. I view myself as a professional and friendly copywriter and editor who can work around you. Whatever kind of copy you are after; be it for a brochure, web copy, direct mail, a newsletter, advert or proof reading, I will dedicate my time to understanding your business and getting you the results you crave. I pride myself on doing the upmost to bring my clients the copy their business and their customers deserve.

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