(Reuters) – FedEx Corp lowered its full-year revenue and profit forecast on Thursday, as the parcel delivery firm seeks new business after its contract with its largest customer, the United States Postal Service, ended last year.

The company expects its full-year revenue to be flat to slightly down year over year, compared to the prior forecast of approximately flat.

It now expects adjusted profit to be in a range of $18.00 to $18.60 per share, from its previous outlook of $19.00 to $20.00 each.

FedEx in December announced long-awaited plans to spin off its profitable Freight division, a move analysts said could unlock up to $20 billion in shareholder value, while clearing the way for FedEx management to zero in on merging operations of its separate Express and Ground units to boost profits.

Memphis-based FedEx earlier in December lowered its profit outlook for the full year ending May 2025, calling for adjusted profit of $19 to $20 per share. That was down from its initial target range of $20 to $22 per share.

(Reporting by Lisa Baertlein in Los Angeles and Abhinav Parmar in Bengaluru; Editing by Alan Barona)