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FedEx 4Q profit down as customers choose cheaper service amid low-growth economy

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In this Tuesday, April 23, 2013, photo, a FedEx cargo planes comes in for a landing at the Juneau International Airport in Juneau, Alaska. On Wednesday, June 19, 2013, Fedex Corp. reports quarterly earnings. (AP Photo/The Juneau Empire, Michael Penn)

DALLAS – FedEx’s quarter profit is down 45 per cent from a year ago as customers trade down to less-expensive delivery options and the package delivery company restructures some parts of its business.

FedEx said Wednesday that it earned $303 million in the fourth quarter, down from $550 million a year ago.

Excluding restructuring costs and aircraft write-downs, FedEx’s profit would’ve been $2.13 per share. That’s much better than the $1.96 per share that analysts were expecting.

The company says it’s still being hurt by weak economic growth and customers choosing lower-rate international services. FedEx Express is cutting capacity between the U.S. and Asia.

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