FedEx cuts earnings outlook


Slower pace: A FedEx driver delivers a cart of packages in New York. The company’s profit margins have come under pressure as commercial services have declined. ― AP

DALLAS: FedEx Corp cut its outlook for annual profit after missing analysts’ quarterly earnings estimates because of higher costs and stalled growth in shipments.

The company said a tight labour market was a key drag on fiscal first-quarter profit, as a dearth of workers drove up wages, reduced network efficiencies and increased the need to hire outside transportation services.

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