WASHINGTON, March 19 (Xinhua) -- U.S. logistic giant FedEx reported on Tuesday quarterly financial results that were below expectations, saying that a weakness in global trade took a toll on its revenue growth.
The Tennessee-based company said its net income was 739 million U.S. dollars for its third quarter ending Feb. 28, with diluted earnings per share at 2.8 dollars.
For the same period a year earlier, net income was 2.07 billion dollars, with diluted earnings per share at 7.59 dollars.
"Our third quarter financial results were below our expectations and we are focused on initiatives to improve our performance," said Frederick Smith, chairman and chief executive officer of FedEx.
FedEx said a recent slowdown in the global economy and trade hurt its top line.
"Slowing international macroeconomic conditions and weaker global trade growth trends continue, as seen in the year-over-year decline in our FedEx Express international revenue," said Alan B. Graf Jr., executive vice president and chief financial officer of FedEx.
FedEx's shares dropped 0.54 percent to 181.41 dollars at the close of trading at the New York Stock Exchange on Tuesday.
"We have launched our voluntary employee buyout program, constrained our hiring, are limiting discretionary spending and are reviewing additional actions to mitigate the lower-than-expected revenue trends," said Graf.
"Our investments in innovation, network infrastructure and automation will increase our competitiveness and drive long-term earnings growth," said Smith. "FedEx built and operates the preeminent global parcel and logistics network, and we have a lengthy track record of success."
Founded in 1971, FedEx is an international courier delivery services company. The company ranked 50th on the Fortune 500 list in 2018.
