FedEx Corp. said profit fell 22% in its fiscal fourth quarter to $191.3 million, or 64 cents a share, as customers switched to cheaper, lower-priority shipments. Sales rose 5.5% to $5.12 billion.
FedEx had lowered expectations for the quarter twice last month, leading analysts to revise their forecasts down to 52 cents a share.
To further reduce costs, FedEx said it will end Sunday deliveries for priority overnight shipments, effective Aug. 27. The Memphis, Tenn.-based company also is deferring aircraft deliveries and reducing, delaying or eliminating some other projects.
FedEx rose $1.91 to $38.71 on the NYSE.