GLOOM TO COME: FedEx Corp. says the global economy is stalling and it’s going to get worse next year. The world’s second largest package delivery company issued a forecast for the current quarter well under what analysts were expecting and cut its forecast for the fiscal year ending in May 2013.
FEAR FACTOR: A steep decline in Asian exports due to weakness in Europe is causing most of the pain. But consumers and businesses are also choosing to move goods more slowly to save money.
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SPEEDY SLOWDOWN: As the global economy has slowed, FedEx customers have chosen to move goods by ship or by truck instead of by plane. FedEx hasn’t been able to cut costs fast enough to match the decline in demand.
