Business Highlights

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Fedex cuts 4Q profit forecast, blames fuel costs

MEMPHIS, Tenn. (AP) -FedEx is cutting its fourth-quarter guidance, blaming a steep increase in fuel costs.

The Memphis, Tenn.-based shipping company says it now expects to post a fourth-quarter profit of $1.45 to $1.50 per share, down from its previous prediction of $1.60 to $1.80 per share.

Fedex says its fuel costs have risen by more than 7 percent since it issued its previous guidance in March.

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March trade deficit drops by bigger-than-expected amount

WASHINGTON (AP) -The U.S. trade deficit narrowed sharply in March as demand for imports fell by the largest amount since the last recession was ending. Analysts forecast that trade would continue to be one of the economy's few bright spots this year.

The March deficit totaled $58.2 billion, down 5.7 percent from February, the Commerce Department reported Friday. It was a much larger improvement than had been expected.

The smaller deficit was driven by a 2.9 percent drop in imports.