FedEx profit falls 17 percent, hurt by TNT cyberattack

ASSOCIATED PRESS
MEMPHIS
Published 21.09.2017 00:28
Updated 21.09.2017 00:32

FedEx said Tuesday that its first-quarter profit fell 17 percent, hurt by a June cyberattack at its TNT Express business that caused shipping delays in Europe.

It also cut its profit outlook for the year and its shares fell in after-hours trading. The package delivery company said that most of TNT's operations are up and running but profit, revenue and package volume are still down from previous levels. FedEx bought TNT last year to expand its business in Europe.

Looking ahead to the busy holiday season, FedEx said Tuesday that it plans to hire 50,000 people to help deliver packages, the same number it hired last year. The company announced last month that it would not be charging customers an extra holiday shipping fee like it did last year. Overall, FedEx reported net income of $596 million, or $2.19 per share, in the three months ending Aug. 31. That's down from $715 million, or $2.65 per share, in the same period a year ago.

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