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Broad impact of diesel spike

Published Monday, May 12, 2008

High diesel fuel prices – thanks to skyrocketing crude oil prices that show no signs of abating – are broadly impacting the U.S. transportation system. However, some freight segments are finding that they can cope with higher fuel costs better than others. Memphis-based FedEx Corp. is lowering its earnings forecast for its fourth fiscal quarter (which ends May 31) to $1.45-$1.50 per share from its previous projection of $1.60 to $1.80 per share because its fuel costs are outrunning the express giant’s ability to recoup them via surcharges. “Since we provided earnings guidance for the ...

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