FedEx Earnings Dive 75%

By Kevin Spak,  Newser Staff
Posted Mar 19, 2009 7:52 AM CDT
Arms loaded with packages, an unidentified man heads to a FedEx collection box in Denver on Wednesday, Dec. 17, 2008.   (AP Photo/David Zalubowski)
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(Newser) – FedEx net income plunged 75% in the third quarter, the company announced today, a bad sign for economists who consider the shipping giant a bellwether. FedEx also announced plans to cut $1 billion in costs, though it didn’t detail how many job cuts that might entail. The company has already lowered salaries, with CEO Fred Smith taking a 20% pay cut. Shares fell 5.9% in premarket trading, the Wall Street Journal reports.