FedEx has just announced it will cut costs and increase shipping rates for 2009 (3% average net increase, 3.8% net increase for FedEx Ground) because of the economic crisis. The company has lowered its fiscal 08 expected profits to be between $3.50-$4.75 earnings per share, down from $4.75-$5.25 a share. The new forecast is significantly lower than Wall Street forecasts, who expected the company to earn about $5.16 a share.

In other news, FedEx competitor, Con-way, has too lowered its 2008 forecast to earnings of $2.20-$2.35 a share, down from $2.60-$2.80 per share earlier in the year. Con-Way also recently cut its payroll costs by up to $40 million for 2008 by reducing its workforce by 8%, or 1,450 employees, across North America.

No additional job cuts were announced, from either FedEx or Con-Way.