The American logistics group Fedex earned less in the first fiscal quarter due to significantly higher labor costs. The company reduced its prospects for the year 2021/2022. Investors reacted with alarm, while Fedex stock fell in trading after hours in the US 4.9 percent away.
In the three months ended August, profits fell 11 percent, to $ 1.1 billion, or $ 4.09 per share. Adjusted for restructuring costs, among other things, earnings per share are $ 4.37. According to additional information, revenue increased 14%, to $ 22 billion.
According to Factset, analysts expected sales of $ 21.9 billion and a earnings per share of $ 4.88. “The effects of tight labor markets they remain the biggest problem for our company, “said Raj Subramaniam, Fedex’s chief operating officer. The labor shortage has greatly increased costs, only for Overtime and higher wagesto hire employees, they had to pay $ 450 million. Fedex now forecasts adjusted earnings per share for the year that began in June between $ 18.25 and $ 19.50. So far, the company had announced it would cost between $ 18.90 and $ 19.90.