When the US Federal Express (FedEx) announced its quarterly results, it warned that China-US trade frictions, coupled with the failure to renew with Amazon, could impact 2020 results.
FedEx expects that the adjusted profit for the fiscal year 2020 will record a low single-digit decline. Alan Graf, the company’s chief financial officer, warned that the 2020 results are being negatively affected by continued weak international trade and industrial production.
Reuters quoted express industry expert Matthew White as saying that if tariffs rise to 25% as stated by the US government, one of the biggest losers in the US economy would be FedEx.
For the fourth quarter ended May 31, FedEx’s adjusted net profit for the previous quarter was $1.32 billion, equivalent to $5.01 per share, compared to $1.6 billion for the same period last year. Revenue for the period increased from $17.3 billion to $17.8 billion.