Continued Weak Profits Expected At FedEx (FDX)

Saying that it sees global economic improvement as international shipments increase, Federal Express (NYSE: FDX) cautioned at the same time that profits are expected to remain weak at least through the end of 2009. Fiscal 2010 first-quarter earnings at the world’s second largest package delivery firm dropped 53% from a year prior, which was the prediction from its release last week.

Repeating also from last week, FedEx expects the fiscal second-quarter results to reflect a slight improvement in economic activity worldwide. For the quarter ending on August 31, the company reported earnings of $181 million, or 58 cents per share. This compares with $384 last year, which was $1.23 per share. Revenues of $8 billion for the quarter were down 20 percent from the year prior.