FedEx Corp (NYSE:FDX) shares dropped on Tuesday after the package delivery firm warned that its full-year earnings will miss estimates as it reported a fall in first-quarter numbers impacted by the US-China trade war and loss of business from internet retail giant Inc (NASDAQ:AMZN).

The NYSE-listed firm said it now expects adjusted earnings for the full-year ended May 31, 2020 to be $11 to $13 per share, lower than the current consensus estimate of $14.69 per share.

FedEx said its revenue outlook has been reduced due to increased trade tensions and additional weakening of global economic conditions since its initial fiscal 2020 forecast in June. The company said the revised outlook also reflects increased FedEx Ground costs and August’s loss of FedEx Ground business from a large customer – understood to be Amazon.

In its fiscal first quarter, FedEx reported a 14% drop in adjusted net income to $800 million, or $3.05 per share, below the consensus forecasts for $3.15 per share, with revenue flat at $17.05 billion.

In a statement on the Memphis, Tennessee-based group’s website, released after-market hours on Tuesday, FedEx’s chief executive Frederick Smith said:  “Our performance continues to be negatively impacted by a weakening global macro environment driven by increasing trade tensions and policy uncertainty.”

But, he added: “Despite these challenges, we are positioning FedEx to leverage future growth opportunities as we continue the integration of TNT Express, enhance FedEx Ground residential delivery capabilities and modernize the FedEx Express air fleet and hub operations.”

In early trade on Wednesday,  FedEx shares lost nearly 13% at $151.15. Shares of rival United Parcel Service Inc (NYSE:UPS) fell 1.3% to $120.79.

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