Losing Amazon as a customer is weighing on FedEx's bottom line
The delivery company on Tuesday posted a slight revenue decline and a 12% drop in operating income for the three months ending August 31, compared to the same period last year. Contributing to that decline, the company said, were global trade disputes, increased costs related to the expansion of its delivery services and the"loss of business from a large customer," a likely reference to Amazon.FedEx's stock fell nearly 10% in after-hours trading.
3% of its revenue in 2018, but losing the business of the e-commerce leader was a sign of growing competition in the logistics business. Read MoreIn its Tuesday statement, FedEx lowered the forecast for its full-year 2020 earnings, citing the loss of that"large customer," as well as global trade tensions and a weakening global economic outlook. The company now expects earnings per share of $10 to $12. In 2019, FedEx posted full year earnings per share of $2.
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