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FedEx Corp. shares fell nearly 17% in the extended session Thursday after the logistics company pulled its outlook for the year, called for significantly lower quarterly profit and lower revenue, and said that fiscal 2023 is about to become worse.

said fiscal first quarter was hit by lower volumes globally, a trend that got worse toward the end of the quarter. It expects its business conditions “to further weaken” in the fiscal second quarter.

The company called for preliminary fiscal first-quarter adjusted earnings of $3.44 a share on sales of $23.3 billion.

Analysts polled by FactSet expect the company to report adjusted EPS of $5.14 on sales of $23.6 billion in the quarter when it reports a complete financial snapshot on Sept. 22. FedEx said it will offer an updated outlook and detail its cost-cutting plans then.

FedEx blamed “macroeconomic weakness” in Asia and “service challenges” in Europe for a $500 million revenue shortfall in these regions. Moreover, revenue from FedEx Ground is about $300 million below company forecasts, the company said.

FedEx vowed to cut costs “aggressively” and said it was mulling over other ways to “enhance productivity.”

Among other moves, FedEx said it will close more than 90 FedEx Office locations as well as five corporate offices, and put off new hiring.

Only three months ago, FedEx gave investors a rosier outlook for its fiscal 2023.

In June, the company said its FedEx Express business improved in part thanks to fuel surcharges. But it already warned then that volumes were low globally due to pandemic lockdowns and economic and geopolitical uncertainty in Asia and beyond. It also reported lower FedEx Ground operating results.

Besides withdrawing its outlook for fiscal 2023, FedEx called for fiscal second-quarter revenue between $23.5 billion and $24 billion, and adjusted EPS of $2.75 “or greater.” That contrasts with expectations of EPS of $5.48 on sales of $24.9 billion in the quarter, according to FactSet.

FedEx cut capital spending to $6.3 billion, compared with a previous forecast of $6.8 billion. The company kept its $1.5 billion share buyback plan intact, saying it expects to buy back $1 billion in the fiscal second quarter.

FedEx stock has lost 21% so far this year, compared with losses of around 16% for the S&P 500 index.

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