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FedEx 3Q profit falls due to weak airfreight business

Mar. 21, 2013 @ 12:00 AM

DALLAS -- FedEx said Wednesday that third-quarter profit fell 31 percent as customers shifted to slower and less-expensive international air-shipping options, and it cut its forecast of full-year earnings.

The company says it will cut capacity to and from Asia starting next month and might retire some of its older airplanes.

FedEx Corp. said its net income fell to $361 million, or $1.13 per share, in the three months ended Feb. 28. That's down from $521 million, or $1.65 per share, a year earlier.

Excluding costs of voluntary buyouts for some U.S. employees, the company says it would have earned $1.23 per share.

Revenue rose 4 percent to $11 billion.

Analysts were looking for $1.38 per share and revenue of $10.9 billion, according to FactSet.

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