KUALA LUMPUR, March 21 (Bernama) -- Bursa Malaysia’s benchmark index ended the day marginally higher supported by renewed buying interest in blue-chip stocks, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 1.29 points to 1,505.45 from Thursday’s close of 1,504.16. The benchmark index opened 0.29 of-a-point lower at 1,503.87 and moved between 1,503.71 and 1,513.23 throughout the day. On the broader market, losers outpaced gainers 513 to 371 while 428 counters were unchanged, 1,125 untraded, and 29 suspended. Turnover rose to 3.43 billion units worth RM4.28 billion from 3.27 billion units worth RM2.64 billion on Thursday. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said buying interest was seen particularly within defensive sectors such as utilities, healthcare, and banking during the morning session.
FedEx's Profit Forecast Takes a Hit Again: What Does It Mean for the U.S. Economy?
FedEx is the latest company to signal a slowdown in the U.S. economy. For the third consecutive quarter, the global shipping giant has revised its profit forecast downwards, citing ongoing weakness and uncertainty within the U.S. industrial sector.
Key Takeaways:
Profit Outlook Cut: FedEx lowered its earnings forecast for fiscal 2025, now expecting profits between $18 and $18.60 per share, down from the previous range of $19 to $20 per share. Analysts had been expecting $18.93 per share.
Continued Demand Weakness: The company's business-to-business shipments, which are typically higher-margin, are still feeling the strain. The freight division, in particular, has been hit hard with fewer shipments and lower weights, although the impact has softened somewhat compared to last quarter.
Sales Projections: FedEx now expects sales to be flat or slightly lower year-on-year, signaling less-than-expected growth for the company. This comes after the December forecast of flat sales.
Spending Cuts: FedEx plans to lower its capital spending to $4.9 billion, down from the previous estimate of $5.2 billion. The focus will be on improving network efficiency, modernizing its fleet, and automating facilities.
Mixed Earnings Report: For the fiscal third-quarter, FedEx posted adjusted earnings of $4.51 per share on $22.2 billion in sales—just shy of analyst expectations, but better than anticipated in some areas.
What’s Driving the Decline?
FedEx CEO Raj Subramaniam pointed to “continued weakness in the U.S. industrial economy” as a primary factor. The company also had to navigate a compressed peak season and severe weather events, all of which compounded the impact on their freight business.
Wall Street analysts are starting to get worried. Besides the weather disruptions, there’s been a shift in sentiment, from optimism over post-pandemic recovery ("Trump Bump") to growing concerns over a potential recession.
Why Should You Care?
FedEx is often seen as a barometer for the global economy. Their struggles with low demand and profit cuts could signal broader economic challenges, especially in the industrial sector. As FedEx prepares for a less-than-ideal fiscal year, it’s a wake-up call for businesses and investors alike to brace for potential economic headwinds ahead.
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