FedEx Corp. (NYSE: FDX) reported financial results for the first quarter ended August 31st. Starting on January 6th, 2020, the company will increase shipping rates at an average of 4.9% as freight shipping rates will increase by an average of 5.9%.
“Our performance continues to be negatively impacted by a weakening global macro environment driven by increasing trade tensions and policy uncertainty,” said Frederick W. Smith, FedEx Corp. chairman and chief executive officer. “Despite these challenges, we are positioning FedEx to leverage future growth opportunities as we continue the integration of TNT Express, enhance FedEx Ground residential delivery capabilities and modernize the FedEx Express air fleet and hub operations.”
The 2020 earnings forecasts have been lowered due to the decrease on the company’s revenue outlook. Trade tensions and global economic conditions continue to weaken making the company take a bigger loss.
“FedEx is implementing additional cost-reduction initiatives to mitigate the effects of macroeconomic uncertainty, including post-peak reductions to the global FedEx Express air network to better match capacity with demand,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “However, we are continuing to make strategic investments to improve our capabilities and efficiency, which we expect will drive long-term increases in earnings, margins, cash flows and returns.”
FedEx share value fell below USD 155 in early trading Wednesday.