(Reuters) – FedEx Corp reported third quarter earnings on Thursday and said it expects further staff reductions.
Highlights:
* Q3 earnings per share $0.31
* Sees Q4 earnings per share $0.45 to $0.70
* Q3 revenue fell 14 percent to $8.14 billion
* Says further reduction of personnel and work hours
* Says network capacity reductions at Fedex express and Fedex freight
* Says cost-reduction actions are expected to result in fourth quarter charges
of approximately $100 million
* Says streamlining of information technology systems and other internal
processes
* Says actions are targeted to reduce expenses by approximately $1.0 billion
* Says expects earnings to be $0.45 to $0.70 per diluted share in the fourth
quarter
* Says outlook assumes continued weak global macroeconomic conditions and
stable fuel prices
* Reuters Estimates Q3 earnings per share view $0.46, revenue view $8,681.14
million
* Reuters Estimates FY 2009 earnings per share view $3.97
* Reuters Estimates Q4 earnings per share view $0.72

 

Stock is up 5%...

 

From Yahoo Finance, via Drudge:

"I think that what we are showing by the cost reductions we had already taken and the ones that we are about to take, we have a lot more flexibility and variability in our cost structure than most people give us credit for," Chief Financial Officer Alan Graf said.

The biggest part of the cost cuts will come in FedEx Express, according to Dave Bronczek, the unit's chief executive.

 

I know this is anecdotal, but I just made a withdrall from the credit union branch at Hacks Cross. The parking lot was probably less than 3/5 full. Many fewer cars ther than I've ever seen.

 

I think its the Democrat lot most of are worried about...

Interesting observation none the less...

 

Some posters here would say we need to open up the spots so he doesn't have to drive as far to find one to park his Captains car in!

 

The other 2/5's were in the Jet Strip parking lot

 

No, the real reason is that the Univ of Memphis is playing in the NCAA tourney this morning.

 

At least we're not worried about the parking lots at any of the NASCAR events to see #11 at about $43,000,000 a year, our F-1 commitment, the Redskin Stadium parking lot, the Memphis Arena parking lot, or FedEx Golf Championships. We've still got plenty of money to ensure those interests are well funded.

Actually I'm pretty excited about our next CBA negotiations. If the Company is willing to even consider throwing some $500,000,000 at a seniority list realignment, home purchase plan, excess bid and seat shuffle, open a new international hub and domicile, and buy and option 45 new B-777F's, I think we'll do just fine. We just need to stay focused with the right people driving this ship.

 

Yeah....... that would be me...... a cost reduction we are about to take.

Just a unit of measure to good ol' Alan.