FedEx Corp. saw its profit slide in the third quarter, attributing the drop to the consolidation of two business lines and unusually severe winter storms.
The Memphis-based shipping giant reported income of $231 million, or 73 cents per share, in the quarter ended Feb. 28, compared to income of $239 million, or 76 cents per share, a year ago.
FedEx (NYSE: FDX) did boost revenue by 11 percent in third quarter, to $9.66 billion from $8.7 billion in the year-ago quarter.
Looking ahead, FedEx projects earnings of $1.66 to $1.83 in the fourth quarter, assuming the current fuel price outlook and continued, moderate economic growth in the global economy. The company reported earnings of $1.33 per share in last year's fourth quarter.
FedEx did note fourth quarter earnings could be affected by fuel price volatility and the currently unknown operational cost impact of the earthquake and tsunami in Japan.
FedEx combined its FedEx Freight and FedEx National LTL operations on Jan. 30, the cost of which reduced its earnings. Costs associated with that move included lease termination costs and severance expenses.