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Cyber attack, hurricane weigh on FedEx quarterly profit

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Cyber attack, hurricane weigh on FedEx quarterly profit

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(Reuters) – Package delivery company FedEx Corp <FDX.N> on Tuesday reported a lower-than-expected quarterly net profit due to service disruptions from a cyber attack on its Dutch unit, the impact of Hurricane Harvey and higher costs, and also lowered its full-year earnings forecast. Shares of the company, often considered a bellwether for the U.S. economy as are those of rival United Parcel Service Inc <UPS.N>, dipped more than 2 percent in after-hours trading. The Memphis-based company reported net income for its fiscal first quarter ended Aug. 31 of $596 million (441.78 million pounds) or $2.19 per share, down more than 16 percent from the year-ago $715 million or $2.65 per share. Excluding one-time items, the company reported earnings per share of $2.51. Wall Street analysts had expected earnings per share of $3.09. FedEx lowered its forecast for fiscal 2018 earnings per diluted share to a range of $11.05 to $11.85, from a previous range of $12.45 to $13.25. Analysts forecast earnings of $13.01 per share for the full year. “The impact of the cyberattack on TNT Express and lower-than-expected results at FedEx Ground reduced our first-quarter earnings,” said FedEx Corp Chief Financial Officer Alan Graf. “We are currently executing plans to mitigate the full-year impact of these issues.” FedEx said the cyber attack cost 79 cents per share and Hurricane Harvey cost 2 cents per share.

(Reporting by Eric M. Johnson in Seattle; Editing by Matthew Lewis)
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