FedEx Corp. reduced its profit outlook for the year through Mayafter quarterly earnings dropped for the first time in almost threeyears amid reduced demand for premium shipping services.

Earnings will be $6.20 to $6.60 a share compared with a previousforecast of $6.90 to $7.40, excluding potential benefits from costcuts that the Memphis, Tennessee-based company is reviewing. FedExsaid in a statement that it will boost rates at its FedEx Expressunit.

“Weakness in the global economy constrained revenue growth atFedEx Express during our first quarter and affected our earnings,”Chief Executive Officer Fred Smith said in the statement. “We aretaking further actions to reduce costs and adjust our networks tomatch current and anticipated shipment volumes.”

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