© Reuters. FILE PHOTO: A Federal Express truck is shown in Los Angeles, California, U.S., October 16, 2019. REUTERS/Mike Blake/File Photo
(Reuters) -FedEx cut its full-year revenue forecast on Tuesday after United Parcel Service (NYSE:) clawed back customers lost during its tumultuous labor negotiations.
FedEx (NYSE:) now expects low-single-digit percentage decline in revenue year over year, compared to the prior forecast of about flat revenue growth.
The company’s shares fell 6.7% to $261.38 after the bell.
FedEx, which has been slashing costs to protect profits, saw some worried UPS customers shifting packages to the FedEx network ahead of the Aug. 1 expiration of the rival’s contract covering about 340,000 United Brotherhood of Teamsters-represented workers.
As one of the largest providers of less-than-truckload shipping, FedEx also was in prime position to benefit from the bankruptcy of Yellow (OTC:), one of the sector’s dominant players.
FedEx said it expects to repurchase an additional $1 billion of common stock during fiscal 2024.