FedEx Q1 profit down 7 percent on labour shortfall

Stattimes22 Sep, 2021News

US delivery firm FedEx reported a 7 percent decline in first quarter profit to $1.19 billion for the first quarter ended August 31, 2021 even as revenue increased 14 percent to $22 billion. The first quarter operating results were negatively affected by an estimated $450 million year-over-year increase in costs ?due to a constrained labour market which impacted labour availability, resulting in network inefficiencies, higher wage rates, and increased purchased transportation expenses,? an official statement said.