(Reuters) -FedEx Corp announced an additional $1 billion in cost cuts after quarterly profit dropped sharply in the latest quarter, when softer-than-expected demand outpaced the delivery giant’s efforts to shelter profits by slashing costs.
Shares rose 2.5% to $168.49 in extended trading.
Memphis, Tennessee-based FedEx (NYSE:) said adjusted profit fell to $815 million, or $3.18 per share, from $1.3 billion, or $4.83 per share, for the fiscal second quarter ended Nov. 30 compared to the same period a year previous.
Per-share earnings beat analysts’ estimates by 36 cents per share, according to Refinitiv I/B/E/S Estimates, while revenue came in $22.8 billion – below their target of $23.74 billion.
With the expense reductions, FedEx now expects fiscal 2023 cost savings of $3.7 billion.