Multinational conglomerate FedEx Corp. cut its earnings guidance for the year after labor issues dragged its latest quarterly income, the company announced in a statement.

  • The company reported net income for the fiscal first quarter ended August at $1.19 billion or $4.37 per share, down from $1.28 billion or $4.87 per share recorded the previous year. Revenue climbed 14% to $22.0 billion.
  • FedEx recorded $450 million additional costs due to supply shortages, covering higher overtime and increased wages to entice more workers, as well as additional expenses on transportation.
  • Earnings per share guidance was downgraded to $18.25 to %19.50 for the fiscal year, down from the forecast of between $18.90 to $19.90 it announced in July. It also targets to add 90,000 workers to boost its workforce amid the upcoming holidays.

FedEx also plans to boost its automated sorting facilities and expand its sites to tackle bottlenecks. FDX is down 6.66% premarket.