The business stories that matter, by Fortune's Colin Barr
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May 9, 2008, 4:16 pm

Fuel prices flatten FedEx

Fuel prices are killing FedEx (FDX). The Memphis, Tenn., freight company cutĀ its fourth-quarter earnings forecast, citing a 7% rise in fuel prices since it made its last projection back in March. FedEx said it now expects to make $1.45-$1.50 a share, down from the previous forecast of $1.60 to $1.80 a share. FedEx, which made $1.90 a share in the year-ago quarter, said the weak economy “has restrained demand for U.S. domestic express package and LTL freight services,” but saved its strongest words for the surge in fuel costs driven by crude oil’s recent run to around $125 a barrel.

“While we have dynamic fuel surcharges in place, they cannot keep pace in the short-term with rapidly rising fuel prices,” finance chief Alan Graf said. “This revised outlook assumes no additional increases to the current fuel price environment and no further weakening of the economy.” Shares fell 4% in postclose trading.

What Mark Deland Said, but Elect somebody more noteworthy, like Bob Barr, Former Republican gone Libratarian. I do agree, this poor sick country is too numbed to give a care of who and what is being elected.We just grudgingly pay more and more at the gas pumps. Watch “Death of the Electric Car”. My fellow Americans, Revolution is in the air, just like in 1789, France. As for the absolute corporate and big money control of our government… “But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.” The Declaration of Independence

Posted By Junglefrank, Eugene Oregon : May 12, 2008 11:59 pm

David Frantz is right. Both the Democrats and the Republicans have sworn fealty to the Zionist regime in Israel. At the same time we condemn Iran for not allowing UN inspectors full access to their nuclear facilities, we turn a blind eye to the fact that Israel has had a clandestine nuclear weapons program for years. It’s been estimated that this war in Iraq will cost the U.S. taxpayers close to three trillion dollars. Our country is already bankrupt! Our economy is in rapid decline and the cost of food and energy is skyrocketing. The only hope we had to turn this mess around was to elect Ron Paul for President. But the main stream media and the global elite would never let that happen. And of course, the American public are too busy watching American Idol and Dancing with the Stars to worry about anything as serious as geopolitics. We’re a nation of children. Shame on us.

Posted By Mark DeLand, FL : May 12, 2008 7:16 am

Yeah gas…it doesn’t have anything to do with how competative the USPS, DHL and UPS have become. Not to mention how user friendly. FEDEX is a pain in the ass and costs more than most.
But I’m sure it’s all crude oil’s fault.

Posted By Rain, Seattle, WA : May 10, 2008 12:48 am

Firms whose operations are conjoined with fuel costs will be hard-pressed to issue credible guidance. With respect to the market, seems like a double-dip is all but assured.

Posted By Jeff Spear, Mt. Vernon OH : May 9, 2008 10:41 pm

I hope Gas goes to 10 bucks a gallon! then perhaps my fellow Americans will WAKE UP!!

Our support of Israel has cost OUR nation multi TRILLIONS of dollars in direct aid AND the hidden cost to our nation beginning with the Arab oil Embargo!!

Enjoy!!!!

Posted By David Frantz, Manchester,TN : May 9, 2008 9:15 pm
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Colin Barr covers business and finance for Fortune.com. Previously he was an editor at TheStreet.com and author of the weekly Five Dumbest Things on Wall Street column, and an editor at Dow Jones Newswires.
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