FedEx Corp. said net income dropped 75% in its fiscal third quarter, below even Wall Street's grim predictions for a company considered a bellwether of the national and global economy.
The shipping company also said it plans to cut $1 billion in expenses in the coming fiscal year, mostly from its Express unit, which generates nearly two-thirds of the company's overall revenue. Revenue at the Express unit was off 18% for the quarter ended Feb. 28. Overall, the company saw a 5% drop in its Express daily package volume for the quarter.
The company said its cost-cutting plans will include job cuts, though it didn't provide specifics. It will also reduce network capacity at its express and freight segments, cut back work hours and expand its compensation reductions to non-U.S. workers, where allowed.
From a Dow theory perspective, this is terrible news.