FedEx profit up, but misses expectations

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FedEx today blamed bad weather for an estimated $125m reduction in operating income in the third quarter, which ended on February 28. Revenue rose 3% to $11.3bn, but missed Wall Street’s expectations of $11.43bn. The delivery company also trimmed its profit forecast for the full year – but gave a relatively optimistic outlook for growth. Last week, however, Fred Smith, CEO and president, told delegates at the World Cargo Symposium in Los Angeles not to be too hopeful for the future. “All of us may wish for a return of the halcyon days of double-digit air cargo growth, but we are creatures of much larger forces and the winds are not favorable.”