United Daily News (UDN), one of the primary Taiwanese news groups, recently reported that FedEx just announced its last quarter’s performance. However, unusually, the quarterly report did not provide full-year financial forecasts. The predicted profits for this quarter are lower than market expectations, indicating that weak demand and uncertainty in global trade are unlikely to ease in the short term. After the financial report was released, FedEx’s stock price plummeted more than five percent.
The global logistics giant explained that the lack of forecast is due to “an uncertain global demand environment.” The company’s China-U.S. routes, which are its most profitable, had “deteriorated sharply” in May. Cargo volumes are expected to remain under pressure. President Trump’s trade policies continue to limit the ability of corporate executives to predict the business outlook. The lack of visibility is particularly challenging for FedEx, whose customers span a wide range of industries, from manufacturing to consumer products.
However, there are signs that the company’s long-running push to cut costs and consolidate its ground and air networks is paying off. FedEx cut $2.2 billion in costs in its most recent fiscal year and expects to save another $1 billion this year.
Source: UDN, June 25, 2025
https://money.udn.com/money/story/5599/8829262