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(Reuters) -U.S. delivery firm FedEx Corp (NYSE:FDX) posted a decline in quarterly profit on Tuesday, sending shares down 2.7% after labor costs crimped earnings growth from surging e-commerce shipping and higher shipping rates.
Shares in the Memphis, Tennessee-based company fell $6.96 to $245.10 in after-hours trading after FedEx said difficulty hiring people resulted in a $450 million year-over-year increase in costs due to network inefficiencies, higher wage rates and increased purchased transportation expenses.
Adjusted net income fell to $1.19 billion, or $4.37 per share, for the fiscal first quarter ended Aug. 31, from $1.28 billion, or $4.87 per share, a year earlier.
Revenue increased to $22.0 billion from $19.3 billion.
