FedEx Corp. tumbled after cutting its annual profit forecast for the second time in three months on slowing global growth and rising costs from a 2016 acquisition in Europe.

The disappointing outlook is denting investor confidence in FedEx’s ability to withstand U.S.-China trade tensions and uncertainty over the U.K.’s exit from the European Union. Earnings fell short of Wall Street’s estimates in the quarter ending in February, as a harsh U.S. winter snarled deliveries and added to the pain overseas.

“While expectations were low heading into results, this is worse than we expected when we cut numbers two weeks ago,” Christian Wetherbee, an analyst at Citigroup Inc., said in a note to clients Tuesday.

FedEx is grappling with a downturn while also trying to turn the page on the rocky aftermath of its purchase of Dutch courier TNT Express almost three years ago. Further complicating the picture is a surprise management revamp, with Chief Operating Officer Raj Subramaniam replacing David Bronczek last month. Separately, the head of FedEx’s overnight air-freight business retired in December.

FedEx fell 5.7 percent to $171.15 after the close of regular trading in New York. The shares had risen 12 percent this year through Tuesday, recovering some ground after a 35 percent plunge in 2018. Last year’s drop was FedEx’s biggest in a calendar year since 1987, and almost twice as much as United Parcel Service Inc.’s decline.

‘Bad Quarter’

If the business slowdown continues, FedEx is poised to implement new cost cuts by paring network capacity, reducing labor hours, modifying aircraft deliveries and adjusting investment plans, said Chief Financial Officer Alan Graf. The Memphis, Tennessee-based company already announced a a U.S. employee buyout in December that’s expected to save as much as $275 million in 2020.

“We had a bad quarter, no doubt about it,” Graf said on a conference call to discuss earnings. “But, I’m not letting one bad quarter decide how we’re going to manage this business for the next five years.”

FedEx had anticipated revenue would increase by $6 billion for the year ending in May but will end up with only a $4.5 billion increase, said Chief Executive Officer Fred Smith.

Adjusted earnings for the fiscal year ending in May will be $15.10 to $15.90 a share for the fiscal year ending in May, down from a previous forecast of $15.50 to $16.60, FedEx said in a statement. The outlook excludes expenses for integration, lawsuits, employee buyouts and other items. As recently as September the company had seen annual earnings per share of as much as $17.80.

Profit for the quarter ending Feb. 28 fell to $3.03 a share, trailing the $3.12 average of analyst estimates compiled by Bloomberg—a number that had fallen 10 cents since mid-January. Sales climbed 3 percent to $17 billion, compared with expectations of $17.7 billion.

TNT Integration

FedEx purchased TNT Express in May 2016 for $4.8 billion. Plans for integrating the company were knocked off kilter when a global cyber attack in 2017 caused customers to drop the service. FedEx on Tuesday said integration costs for that acquisition are expected to exceed $1.5 billion through fiscal year 2021, and additional costs may be incurred.

The integration efforts are starting to pay off, said Subramaniam. The company can now put FedEx Express packages onto TNT’s ground-transportation network, which lowers costs and improves transit time by an average of one day on 40 percent of European lanes, he said.

“I want to emphasize that we are not waiting for integration to complete to add value for our customers,” Subramaniam said.