Winter storms hurt FedEx third-quarter results, shares fall

Shares of the company were down 1.14 percent at $136.99 Wednesday before the markets opened.

For the full year the company now expects to earn $6.55-6.80 a share, while analysts on average were looking at earnings of $6.89 a share, as per Thomson Reuters IBES.

FedEx's numbers are the first real look at the impact the brutal winter had on the shipping industry, as temperatures across a vast area of the United States, stretching east from the Great Plains through the Midwest and into the northern Appalachians, ran 6 to 10 degrees Fahrenheit (3.3 to 5.5 degrees Celsius) below normal for two-and-a-half months straight.

Industries like airlines, trucking and railways have also been hurt by the severe winter, with big players like United Continental already warning that its capacity and unit revenues in the first quarter would come in below expectations as winter storms disrupted operations.

On Wednesday, FEDEX (FDX.NY)aid the unusual weather disrupted operations, decreased shipping volumes and increased costs, impacting year-over-year operating incomes by about $125 million.

For the third quarter, the company earned $378 million, or 1.23 a share, on revenue of $11.3 billion. The company's third quarter revenue totaled $11.3 billion, missing forecasts of $11.43 billion.

Analysts expecting earnings of $1.45 a share, according to Thomson Reuters I/B/E/S.

(Reporting by Nivedita Bhattacharjee in Chicago; Editing by Chizu Nomiyama)

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