FedEx Gains After Pledging Cuts as Economy Presses Profit

FedEx Corp. (FDX) (FDX), operator of the world’s largest cargo airline, climbed the most in five months in New York after pledging “significant cost reductions” as slowing economic growth pressures profits.

FedEx’s express unit, which accounts for the bulk of sales, is developing a detailed strategy to improve efficiency in its operating expenses, Chief Financial Officer Alan Graf said on an earnings call. The Memphis, Tennessee-based company said earlier this month it retired 24 jet freighters and would offer more details late this year on its cost-savings plan.

FedEx gained 3.7 percent to $91.74 at 1:02 p.m., erasing decreases that followed a lower profit forecast than analysts estimated. The stock price’s increase of 3.8 percent was the largest since Jan. 10.

Read Full Article from Businessweek

- Posted: 2012-06-19 13:38:20

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