FedEx swings to 4Q loss; guidance disappoints

FedEx said its outlook for the new fiscal year "assumes no additional increases to current fuel prices and no further weakening in the economy."

"Nobody knows when this is going to get better," said Ortwerth of Edward Jones. "In the near term, I say strap in tight and brace yourself, but in the long-term, this company has the strength to weather the storm."

The fourth-quarter earnings included a one-time charge of $891 million for the expected costs of renaming the company's office service and copying division from FedEx Kinko's to FedEx Office.

FedEx had predicted fourth-quarter earnings of $1.45 to $1.50 a share. That projection was lowered last month from earlier company guidance of $1.60 to $1.80 a share, due largely to rising fuel costs.

For 2008, FedEx reported earnings of $3.60 a share, down 44 percent from $6.48 the previous years. Yearly revenue was put at $38 billion, up 8 percent from $35.2 billion.

FedEx shares fell $1.73, or 2.1 percent, to close at $82.60.