Fedex (TG:FDX)
Historical Stock Chart

From Jun 2019 to Jun 2024

FedEx Corp. (FDX) Chief Executive Frederick W. Smith said Wednesday that he sees a number of reasons for optimism in coming months, even as he warned that current economic conditions continue to "throttle" the company.

He noted in particular that international shipping volumes at FedEx's Express unit "appear to have bottomed," falling only 12% in the company's fiscal fourth quarter compared with a 13% third-quarter decline.

Speaking on a post-earnings conference call, Smith cited a number of other positive trends as well, including "moderating" customer inventory-to-sales ratios that should fuel restocking - and thus an uptick in shipments - later this year. He also noted that conditions in the stock and credit markets have been improving, as have some indicators of the manufacturing and housing sectors and consumer confidence.

For the time being, however, Smith said the poor economy is continuing to hurt the company's results.

While conditions may be stabilizing somewhat, FedEx said it doesn't foresee gross domestic product turning positive until the first calendar quarter of 2010.

The company forecast earnings for its fiscal first quarter of 30 cents to 45 cents a share, well below Wall Street's expectation of 71 cents a share.

FedEx shares were off $1.62, or 3.2%, at $49.80 in pre-market trading Wednesday.

-By Bob Sechler, Dow Jones Newswires; 512-394-0285; bob.sechler@dowjones.com