Royal Mail Group PLC (LON:RMG) saw its shares top the FTSE 100 fallers list on Wednesday, hitting a new record low as investors reacted to disappointing numbers overnight from US mail delivery peer FedEx Corp (NYSE:FDX).
In after-hours US trading, FedEx shares dropped 5% to US$175.49 after the parcels group cut its profit targets for the current fiscal year citing troubles at its express delivery business and the impact of a European acquisition.
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The New York-listed company downgraded its earnings per share guidance for the 2018/19 fiscal year to a range of US$12.65 to US$13.40, down from US$15.50 to US$16.60 previously.
FedEx’s management also announced a raft of further cost savings measures including reducing hiring and reducing discretionary spending due to slowing global trade.
With Europe, a particular weak spot for the US firm, other mail delivery stocks in the region such as Royal Mail suffered on Wednesday.
In mid-morning trading, Royal Mail shares – which will be evicted from the UK blue chip index for a second time from next Monday - were 3% lower at 278.20p.