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FedEx Corp. Increases Earnings Outlook

Old 07-26-2010, 05:12 AM
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Default FedEx Corp. Increases Earnings Outlook

FedEx Corp. Increases Earnings Outlook

July 26, 2010 09:00 AM Eastern Daylight Time
Better-Than-Expected Growth in Express and Ground Volumes Drives Revenue and Earnings Improvements

MEMPHIS, Tenn.--(BUSINESS WIRE)--FedEx Corporation (NYSE: FDX) today announced that it expects earnings to be in the range of $1.05 to $1.25 per diluted share for the first quarter ending August 31, up 81% to 116% from $0.58 per diluted share a year ago. The company’s previous guidance for the quarter was $0.85 to $1.05 per diluted share.

“Our revenue and earnings growth are exceeding original expectations, primarily due to better-than-anticipated growth in FedEx Express and FedEx Ground volumes”

For the full year, FedEx expects earnings per diluted share of $4.60 to $5.20, up from $4.40 to $5.00, which reflects the current market outlook for fuel prices and a continued moderate recovery in the global economy. The company reported earnings of $3.76 per diluted share last year.

“Our revenue and earnings growth are exceeding original expectations, primarily due to better-than-anticipated growth in FedEx Express and FedEx Ground volumes,” said Alan B. Graf Jr., FedEx Corp. executive vice president and chief financial officer. “Our package volume growth rates in our first quarter are continuing at a pace similar to our fourth quarter. Of particular benefit to our earnings is the continued strong demand for our higher-margin FedEx International Priority® (IP) package and freight services, with IP package volumes expected to grow more than 20% again this quarter. Customers are favorably responding to our superior service offerings, the capabilities of our unparalleled global network and the best-in-market cut-off times we now offer from numerous points in Asia.”

With the improved outlook, FedEx is also planning to fully restore the company match for 401(k) plans at all FedEx companies effective January 1, 2011. The cost of this restoration is included in the company’s earnings outlook.

FedEx will release the details of its first quarter results on September 16, 2010.
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Old 07-26-2010, 07:35 AM
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All this without our 4a2b profit maximization program in place. Amazing, but January is just around the corner.
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Old 07-26-2010, 10:28 AM
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Seems to be big financial news ... saw a story about FedEx earnings on Bloomberg TV, CNN financial segment and WSJ.com.

I wonder how much 4.a.2.b helped the financial bottom line?

Good news for stock holders like Vagabond The last time I looked the stock was up 5% today.
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Old 07-26-2010, 10:52 AM
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It's amazing what taking money from your employees will do for you.
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Old 07-26-2010, 11:26 AM
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Things are looking perky.......:
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Old 07-26-2010, 12:13 PM
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Originally Posted by JohnnyViper View Post
It's amazing what taking money from your employees will do for you.
It didn't do s..t for us at brown. They took money from us for a yr then furloughed. Speaking of being screwed but hey we're used to it here .
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Old 07-26-2010, 12:15 PM
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Seems like a splendid time to exchange contract openers. By the time we get to mediation, we'll be making record profits. You can take that to the bank.
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Old 07-26-2010, 01:42 PM
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I hate to say it, but the monies that FedEx didn't have to pay out in salary (and benefits), due to 4A2b, really didn't amount to a hill of beans, relative to the overall corporate picture. Regardless, it's really nice to see FedEx not only doing well currently, but also believing that the future is bright, and that our customers are pleased with the products and services that we (I do exclude myself from this "we") as a company provide.

JJ
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Old 07-26-2010, 03:02 PM
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You're right, the 4a2b money is no big deal to them in grand scheme. But when it's added to the money they took from the other employees and all the other nickel and diming they've pulled off, it DOES add up to a hill of beans.

That being said, I am glad to hear that we are doing well and have a positive outlook.
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Old 07-26-2010, 05:13 PM
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FedEx Corp. Increases Earnings Outlook

July 26, 2010 09:00 AM Eastern Daylight Time
Better-Than-Expected Growth in Express and Ground Volumes Drives Revenue and Earnings Improvements

MEMPHIS, Tenn.--FedEx Corporation (NYSE: FDX) today announced that it expects earnings to be in the range of $1.05 to $1.25 per diluted share for the first quarter ending August 31, up 81% to 116% from $0.58 per diluted share a year ago. The company’s previous guidance for the quarter was $0.85 to $1.05 per diluted share.

“Our revenue and earnings growth are exceeding original expectations, primarily due to better-than-anticipated growth in FedEx Express and FedEx Ground volumes”


With the improved outlook, FedEx is also planning to fully restore the company match for 401(k) plans at all FedEx companies effective January 1, 2011. The cost of this restoration is included in the company’s earnings outlook.




Mr. Graf went on to say that FedEx is so pleased with the pilot group and are honestly sorry for initiating the 4a2b section of the contract, that they are going to give them an immediate 10% pay raise. The company also guaranteed that contract negotiations would be complete by the end of the year.
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