Earlier this morning, we noted Starbucks’ (SBUX) inflation woes.
When I wrote "Expect to see more problems like these," I didn’t mean within an hour or two: FedEx (FDX) dropped the bomb that slowing growth and higher energy costs put the squeeze on profits and future revenue expectations:
FedEx Corp. lowered its earnings outlook, citing high fuel costs and weakness in its less-than-truckload freight business.
The Memphis, Tenn., based shipping company cut its fiscal second-quarter earnings estimate to $1.45 to $1.55 a share from $1.60 to $1.75 and dropped its its full-year earnings estimate to $6.40 to $6.70 a share from previous guidance of $6.70 to $7.10.
FedEx said the cuts were due in part to an 8% increase in fuel costs to $85 million and weaker shipping volumes. Less-than-truckload carriers combine freight from multiple customers in their trailers.
"While we have dynamic fuel surcharges in place, they cannot keep pace in the short-term with rapidly rising fuel prices," said Alan B. Graf, Jr., FedEx executive vice president and chief financial officer.
So let’s make a list: What other firms are in danger of seeing sales and profits falter due to high input prices — be they food, energy, labor or other crucial components?
Use comments below to add to the list . . .
Fedex Cuts Earnings Outlook
DOW JONES NEWSWIRES
November 16, 2007 9:34 a.m.
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.