By Kim Khan
Investing.com - FedEx (NYSE:FDX) said Friday the new economic landscape due to the Covid-19 pandemic will weigh on margins and results and that it is suspending forecasts due to “significant uncertainty”.
FedEx stock fell 4.6% in morning trading.
Global business-to-business demand has been hurt by the coronavirus and while “residential delivery services has increased due to sharp increases in e-commerce volume resulting from shelter-in-place and other responsive measures, the shift in mix is expected to negatively impact margins and operating results,” the company said.
"The (Covid-19) pandemic and resulting significantly weaker global economic conditions have negatively impacted our results of operations and are expected to continue to impact our business, results of operations, cash flows and liquidity," FedEx said.
The company added it is implementing temporary surcharges on international and airfreight shipments and ending its money-back guarantee for some services to improve its cash flow.