FedEx Again Lowers Its Outlook

Unrelenting fuel-price increases and soft demand forced FedEx Corp. to lower its quarterly profit forecast for a second time this fiscal year, in the latest sign of continued weakness in the U.S. economy.

Like other major transportation companies dependent on the housing market and consumer spending to drive the shipment of goods to store shelves, FedEx is feeling the pain of a slowdown in both sectors.

The Memphis, Tenn., company said late Friday that its fuel costs have increased by $100 million, or 7%, since the company in March issued its previous outlook for its current ...