Tight job market is causing costs to rise at FedEx
FedEx said Tuesday that its costs are up $450 million in the most recent quarter, as it paid higher wages at a time when it got harder to find new workers and demand for shipping increased.
Overall, FedEx said its fiscal firstquarter expenses rose 16% to $20.6 billion. Its profit fell 11% to $1.11 billion in the three months ended Aug. 31.
On a per-share basis, the Memphis, Tennessee-based company said adjusted earnings came to $4.37 per share, missing Wall Street expectations by 59 cents, according to Zacks Investment Research.
Revenue rose 14% to $22 billion in the period, beating expectations.
FedEx expects full-year earnings in the range of $19.75 to $21 per share, down from its previous forecast of $20.50 to $21.50 per share.