CORRECT: Fedex Cuts 3Q Profit Target On Storms, Fuel Costs

("CORRECT: Fedex Cuts 3Q Profit Target On Storms, Fuel Costs" at 4:42 p.m. EST and an earlier version at 4:24 p.m. EST, misstated the market leader in international package shipping in the second paragraph. The correct version follows:)

 
   DOW JONES NEWSWIRES 
 

FedEx Corp. (FDX) lowered its outlook for earnings in the current quarter because severe winter storms and higher-than-expected fuel prices pressured expenses higher.

The company, among the world's largest international package shippers, said those costs would also alter its full-year guidance, which it will adjust when it announces full results for the fiscal third quarter on March 17.

FedEx's results had been gaining momentum as the global economic picture improved. In its second-quarter results, profit fell but it reported record volume in the overseas business.

FedEx lowered its target for current-quarter earnings by 25 cents to a range of 70 cents a share to 90 cents a share from its December forecast. The new targets mean the company could see per-share profit decline on the year.

"We experienced significant network disruptions in the U.S. and Europe and unusually high costs from severe winter storms," Chief Financial Officer Alan B. Graf Jr. said Monday. He added that fuel prices continued to escalate since the December guidance.

The new quarterly forecast assumes no more weather effects and stable fuel prices for the rest of the quarter.

Shares were down 0.6% at $93.40 in after-hours trading.

-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; [e-mail]