FedEx Corp. lost $11 billion in market value, wiping out two years of stock gains, after withdrawing its earnings forecast on worsening business conditions.
In a potentially worrying sign for the global economy, the package-delivery giant flagged weakness in Asia and challenges in Europe as it pulled its prior outlook and reported preliminary results for the latest quarter that fell well short of Wall Street’s expectations. Conditions could deteriorate further in the current period, FedEx said.
The company will take immediate steps to cut costs, including parking some aircraft, cutting workers’ hours and closing more than 90 of its roughly 2,200 FedEx Office locations.
