(Reuters) -FedEx cut its full-year revenue forecast on Tuesday after United Parcel Service clawed back customers lost during its tumultuous labor negotiations.
FedEx now expects low-single-digit percentage decline in revenue year over year, compared to the prior forecast of about flat revenue growth.
The company’s shares fell 6.7% to $261.38 after the bell.
FedEx, which has been slashing costs to protect profits, saw some worried UPS customers shifting packages to the FedEx network ahead of the Aug.
1 expiration of the rival’s contract covering about 340,000 United Brotherhood of Teamsters-represented workers.
As one of the largest providers of less-than-truckload shipping, FedEx also was in prime position to benefit from the bankruptcy of Yellow, one of the sector’s dominant players.
FedEx said it expects to repurchase an additional $1 billion of common stock during fiscal 2024.
(Reporting by Priyamvada C in Bengaluru; Editing by Shounak Dasgupta)
