FedEx Corp. (FDX) fell in U.S. trading after projecting its
first quarterly earnings decline since 2009 as slowing economic growth hurt
demand for the express packages that provide most of its sales.
A slump in Europe and slowing growth in Asia may have
exposed a weakness of FedEx’s express business, which was built around
customers willing to pay more for speed of delivery, said analysts from Sanford
C. Bernstein & Co. and Raymond James & Associates Inc.
“The economy needs to
get better,” said Arthur Hatfield, an analyst with Raymond James in Memphis,
Tennessee. “We see some pent-up demand but corporations aren’t spending the
money until they get clarity on where policies are going….”
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