FedEx reports 31 per cent drop in quarterly profit, sees full-year earnings below expectations

DALLAS – FedEx says its third-quarter profit fell 31 per cent as customers are opting for less-expensive ground shipping, hurting the company’s airfreight business.

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

Its shares fell more than 3 per cent in premarket trading.

FedEx Corp. said Wednesday that 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. Analysts were looking for $1.38 per share.

The company’s fiscal year ends in May. It expects adjusted earnings of between $6 and $6.20 per share for the year. That is below analysts’ forecasts of $6.35 per share.