FedEx 1Q profit doubles; will cut 1,700 jobs

NEW YORK (AP) — FedEx Corp. indicated today that the global economic recovery remains uneven. It said strength in international shipments are driving profits, but said it will cut 1,700 jobs in an attempt to fix its money-losing U.S. trucking business.

The world's second-largest package delivery company did raise its financial outlook after its first-quarter net income doubled. But the projections for the second quarter and full year fell shy of Wall Street expectations, and the stock dropped almost 3 percent in premarket trading.

Growth in international air shipments has been driving FedEx's results lately. That continued in the first quarter. But the FedEx Freight segment lost money again as demand for large items like refrigerators and other appliances continues to be weak.

As it competes with other trucking companies to ship a limited amount of freight, FedEx has been forced to forgo the rate increases that are helping its other segments grow.

FedEx will combine its FedEx Freight and FedEx National less-than-truckload operations on Jan. 30, closing 100 facilities and cutting 1,700 workers.