In the latest sign of the slowing economy, FedEx Corp. (NYSE:FDX) today reported a decline in fiscal third quarter profit and gave disappointing guidance.

Profit was $420 million, or $1.35 per share, compared with $428 million, or $1.38 per share, a year earlier. Revenue rose 7 percent or $8.59 billion. The company was expected to earn $1.33 on sales of $8.77 billion, according to Thomson Financial.

Though firms often blame the macro environment for their troubles, FedEx has a good excuse. The company said that the economy grew at a slower rate than it expected during the third quarter though it expected a more sustainable growth rate going forward.

Investors, though, weren't so understanding.

Shares of FedEx traded down after the company shaved 5 cents off its forecast for the current quarter. FedEx did reiterate its long-term goal of growing earnings per share by 10 to 15 percent per year though it company said it may not be able to hit that target for fiscal 2008 because of slower economic growth and planned investments in the business, according to Reuters.

Wall Street didn't punish the stock as much as one might expect. Shares were only off about 2 percent in the latest trading, indicating that investors are still bullish on FedEx's prospects. Its shares have declined 4 percent over the past year compared with an 11 percent decline for United Parcel Service Inc. (NYSE:UPS).