FedEx said it expects soaring fuel costs to hurt profits, and it lowered its projections for the fourth quarter. The company noted that fuel surcharges cannot keep pace with the increase in the price of fuel. "Since we provided earnings guidance for the fourth quarter in March when the crude oil price was slightly above $100 per barrel, our estimated fuel costs for the quarter have increased more than 7%, or $100 million from our previous estimate," noted FedEx Chief Financial Officer Alan Graf.

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