FedEx reduces full-year earnings forecast

FedEx Corp. (FDX), operator of the world’s biggest cargo airline, cut its full-year profit forecast as volumes declined amid a slowing economic recovery.Per-share earnings for the year will be $6.25 to $6.75, 10 cents lower than the previous range, the Memphis, Tennessee- based company said today in a statement. Analysts had projected $6.35.FedEx, which ships more packages by air than rival United Parcel Service Inc., has seen volume growth slow as demand for express shipments stagnates amid a weakening economic recovery. FedEx also has been spending more on jet fuel, whose average cost jumped about 48 percent in the period. The company typically has a two-month delay in recovering fuel costs through surcharges.Net income for fiscal first quarter ended Aug. 31 rose 22 percent to $464 million, or $1.46 a share, compared with a mean estimate of $1.45 a share from 23 analysts surveyed by Bloomberg. Profit was $380 million, or $1.20, a year earlier.FedEx and rival United Parcel Service Inc. (UPS) deliver goods ranging from mobile devices to pharmaceuticals and financial documents, making them economic bellwethers.