FDX quarterly profit down 45%
06-19-2013, 08:01 AM
#11
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Posts: 1,077
Originally Posted by MEMbrain
We will be growing.... on the GROUND side. One of the reasons their margins are so much greater than ours is the fact that UPS puts a package on a plane if it's the ONLY way to make service.
This means headwinds to everyone, but UPS is (as they pretty much always has been) already cut to the bone, and has already moved away from the lower margin lift FDX now is walking away from. In an odd fashion UPS pilots benefit from not having 777s as all our Asian lift passes through ANC, requiring more crews.
We're done parking fleets and the age 65 wave has in essence passed. "All" that remains is the world economies, wars, pandemics, contract negotiations and pilotless drones.
What could possibly go wrong?
06-19-2013, 08:26 AM
#12
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Posts: 404
Originally Posted by Sideshow Bob
UPS' ground network is effectively a century old, optimized and entrenched in Americana as much as USPS. They are the largest contractor of rail in the U.S. and are into ocean shipping. UPS' revenue isn't all that much more than FDX, but our profit is. Fred wisely wants to copy that at the same time customers are moving to cheaper shipping. Despite the lamestream media mimicking administration cheerleader BS the economy continues to retract.
This means headwinds to everyone, but UPS is (as they pretty much always has been) already cut to the bone, and has already moved away from the lower margin lift FDX now is walking away from. In an odd fashion UPS pilots benefit from not having 777s as all our Asian lift passes through ANC, requiring more crews.
We're done parking fleets and the age 65 wave has in essence passed. "All" that remains is the world economies, wars, pandemics, contract negotiations and pilotless drones.
What could possibly go wrong?
This means headwinds to everyone, but UPS is (as they pretty much always has been) already cut to the bone, and has already moved away from the lower margin lift FDX now is walking away from. In an odd fashion UPS pilots benefit from not having 777s as all our Asian lift passes through ANC, requiring more crews.
We're done parking fleets and the age 65 wave has in essence passed. "All" that remains is the world economies, wars, pandemics, contract negotiations and pilotless drones.
What could possibly go wrong?
What will be telling is when Fred finally retires, who replaces him. Odds are it will be a beancounter from Corp. to whom the airline isn't the sacred cow it is to Fred.
06-19-2013, 08:36 AM
#13
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Position: MD11 CPT
Posts: 1,077
Originally Posted by MEMbrain
Exactly Sideshow. FedEx Express has just begun to feel the pain as management tries increase profits to UPS levels.
What will be telling is when Fred finally retires, who replaces him. Odds are it will be a beancounter from Corp. to whom the airline isn't the sacred cow it is to Fred.
What will be telling is when Fred finally retires, who replaces him. Odds are it will be a beancounter from Corp. to whom the airline isn't the sacred cow it is to Fred.
What you have going for you is that FDX is Fred's baby...he's emotionally attached and even when he retires he, IMO won't allow his child to be adopted by some profiteering foster parent.
06-19-2013, 08:57 AM
#14
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Posts: 404
Originally Posted by Sideshow Bob
For your sakes I hope not. We've got a bean counter on Red Bull and steroids, and while he's been great for the dividend, for us not so much.
What you have going for you is that FDX is Fred's baby...he's emotionally attached and even when he retires he, IMO won't allow his child to be adopted by some profiteering foster parent.
What you have going for you is that FDX is Fred's baby...he's emotionally attached and even when he retires he, IMO won't allow his child to be adopted by some profiteering foster parent.
06-19-2013, 10:05 AM
#17
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Posts: 1,804
Originally Posted by Sideshow Bob
UPS' revenue isn't all that much more than FDX, but our profit is.
Net income for UPS that year 807 million, FedEx 2.03 billion for 2012.
06-19-2013, 10:47 AM
#18
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Originally Posted by MEMbrain
I think the cry from Wall St. will be loud enough to put everything on the table
The stock price is up considerably today ... like you said, the cry from Wall Street will be heard loud and clear!*?
06-19-2013, 11:03 AM
#19
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Originally Posted by USMCFDX
Not a true statement unless you think 12 billion more for UPS is a small number. That is the difference in revenue between UPS and FDX for 2012.
Net income for UPS that year 807 million, FedEx 2.03 billion for 2012.
Net income for UPS that year 807 million, FedEx 2.03 billion for 2012.
UPS United Parcel Service (UPS) posted net income of $807 million in 2012, down 78.8% from a net profit of $3.8 billion in 2011, though it attributed the earnings decline to a hefty non-cash charge. UPS said earnings were skewed by a mark-to-market, non-cash, after-tax charge of $3 billion related to pension values. It noted the charge did not affect cash flows. On an adjusted basis, the Atlanta-based delivery giant said it earned 2012.
In other words, the OPERATING profit, before funding pensions was $3.8 billion, or roughly $1.7 billion more than FDX, or 44% more, while UPS revenue is only 23% higher.
Sometimes it appears harder to offend radical Islamists than you guys. Anytime anybody says anything that doesn't glorify FDX, the cyber jihad begins...sheesh.
06-19-2013, 11:11 AM
#20
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Why Is FedEx So Optimistic About 2014? | Wall St. Cheat Sheet
FedEx Corp. (NYSE:FDX) has raised its profit expectations for 2014 by 13 percent as the company cuts 3,600 jobs and trims the cost of its international shipping services.
FedEx owns the world’s largest cargo airline, and has been able to make profits even in a weak economy due to the variety and volume of goods it ships worldwide. Despite being more immune to the economic climate than other companies, FedEx saw its fourth quarter profits drop by 45 percent compared with last year, down to 95 cents per share. The company’s adjusted earnings, which excludes costs of restructuring and aircraft groundings, was $2.13 a share, beating analyst estimates for adjusted earnings of just $1.96 per share.
The company also announced that it will be cutting jobs, with 3,600 of its employees leaving under a voluntary buyout program. FedEx plans to cut its workforce 10 percent by May 2014.
FedEx has seen a drop in its more expensive overnight shipments, part of the reason the company needed to start cutting costs. Volume for international priority shipments fell two percent in the last quarter, while lower-cost international economy shipping rose 11 percent. FedEx is changing to support the rise of less expensive shipping options, removing 86 of its older, less fuel-efficient planes and trimming FedEx Express, the branch hit most heavily by the drop in priority shipping. FedEx Express will also cut its shipments between Asia and the U.S. by the end of the month.
The Memphis, Tennessee based company is planning to cut its annual spending by $1.7 billion by 2016. However, the company’s growth expectations aren’t all good news; the estimated growth of 7 percent to 13 percent for next year would equate to a maximum of $7.40 per share, a figure that falls below analyst expectations for $7.28.
FedEx plans to spend money on restructuring to focus on less expensive ground shipping options, as the company’s ground-services business and freight business both posted fourth-quarter growth.
FedEx owns the world’s largest cargo airline, and has been able to make profits even in a weak economy due to the variety and volume of goods it ships worldwide. Despite being more immune to the economic climate than other companies, FedEx saw its fourth quarter profits drop by 45 percent compared with last year, down to 95 cents per share. The company’s adjusted earnings, which excludes costs of restructuring and aircraft groundings, was $2.13 a share, beating analyst estimates for adjusted earnings of just $1.96 per share.
The company also announced that it will be cutting jobs, with 3,600 of its employees leaving under a voluntary buyout program. FedEx plans to cut its workforce 10 percent by May 2014.
FedEx has seen a drop in its more expensive overnight shipments, part of the reason the company needed to start cutting costs. Volume for international priority shipments fell two percent in the last quarter, while lower-cost international economy shipping rose 11 percent. FedEx is changing to support the rise of less expensive shipping options, removing 86 of its older, less fuel-efficient planes and trimming FedEx Express, the branch hit most heavily by the drop in priority shipping. FedEx Express will also cut its shipments between Asia and the U.S. by the end of the month.
The Memphis, Tennessee based company is planning to cut its annual spending by $1.7 billion by 2016. However, the company’s growth expectations aren’t all good news; the estimated growth of 7 percent to 13 percent for next year would equate to a maximum of $7.40 per share, a figure that falls below analyst expectations for $7.28.
FedEx plans to spend money on restructuring to focus on less expensive ground shipping options, as the company’s ground-services business and freight business both posted fourth-quarter growth.
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