FedEx to slash 2009 budget

FedEx has announced it will cut its 2009 capital budget spending by 17% amid falling demand and gloomy predictions of the state of the US economy.

In a preview to its fiscal second quarter report due out on December 18, the company said it expects to spend $2.5 billion for fiscal 2009, down from $3 billion at the start of the year.

"Demand for our services weakened sequentially throughout the quarter and global economic trends continue to worsen, substantially reducing our second half outlook," said FedEx chief financial officer Alan B Graf. "We are adjusting our expense plans to more closely align with the weaker business conditions."

Source: Routes News