FedEx Suspends Guidance, Boosts Cash Reserves
FedEx (NYSE: FDX) said Friday it was suspending guidance and plans to draw down $1.5 billion from a credit facility to reinforce its balance sheet as it attempts to weather the COVID-19 coronavirus pandemic-related global slowdown.
Shares of FedEx are down more than 20% year to date on concerns the pandemic would slow industrial production -- and with it, shipping volumes. The company said Friday in a regulatory filing that global business-to-business demand has been negatively impacted by the COVID-19 pandemic, while lower-margin U.S. ground demand has increased as more U.S. consumers rely on e-commerce.
The shift is expected to crimp margins and operating results.
Source Fool.com
