FDX quarterly profit down 45%
06-19-2013, 04:31 AM
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FDX quarterly profit down 45%
FedEx's quarter profit is down 45 percent from a year ago as customers trade down to less-expensive delivery options and the package delivery company restructures some parts of its business. FedEx said Wednesday that it earned $303 million in the fourth quarter, down from $550 million a year ago.
Excluding restructuring costs and aircraft write-downs, FedEx's profit would've been $2.13 per share. That's much better than the $1.96 per share that analysts were expecting.
The company says it's still being hurt by weak economic growth and customers choosing lower-rate international services. FedEx Express is cutting capacity between the U.S. and Asia.
Excluding restructuring costs and aircraft write-downs, FedEx's profit would've been $2.13 per share. That's much better than the $1.96 per share that analysts were expecting.
The company says it's still being hurt by weak economic growth and customers choosing lower-rate international services. FedEx Express is cutting capacity between the U.S. and Asia.
06-19-2013, 04:41 AM
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There is something else happening in the International area also. Saw a story on the news about a company in Raleigh, N.C. that is making electronic components that used to be assembled in China. With shipping costs and rising wages in China, it is now cheaper to do these jobs in the USA. This appears to be a rising trend. Also, many overseas shippers are going away from the FedEx mode to the longer but cheaper container ship mode. Fortunately FedEx has been able over the years to stay ahead of the changing trends in shipping and adapt to the new business models.
Between the jobs coming back to the USA and the new 3D printer technology that is evolving, the next 5 to 10 years should be very interesting for FedEx and other cargo companies with large overseas business.
Between the jobs coming back to the USA and the new 3D printer technology that is evolving, the next 5 to 10 years should be very interesting for FedEx and other cargo companies with large overseas business.
Last edited by Flyinhigh; 06-19-2013 at 04:43 AM. Reason: clarity
06-19-2013, 05:38 AM
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Maybe a few more videos like this one and people will reconsider shipping methods other than FedEx....
China Air-Freight Handlers at Guangzhou Airport - No Care Policy? - YouTube
China Air-Freight Handlers at Guangzhou Airport - No Care Policy? - YouTube
06-19-2013, 06:57 AM
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Originally Posted by HDawg
Dang if they keep that up they will only make 1.2 billion for the year...
The problem for FedEx management, shareholders, FedEx Express employees and Wall Street analysts is that UPS makes almost that much each QUARTER!
Expect more cuts to come on the airline side as management makes changes in hopes of matching UPS' margins.
06-19-2013, 07:09 AM
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Originally Posted by MEMbrain
The problem for FedEx management, shareholders, FedEx Express employees and Wall Street analysts is that UPS makes almost that much each QUARTER!
Expect more cuts to come on the airline side as management makes changes in hopes of matching UPS' margins.
Expect more cuts to come on the airline side as management makes changes in hopes of matching UPS' margins.
I guess it depends on your definition and use of margin, but I believe our profit to expense ratio is greater than UPS. As they are much larger than we are I have no doubt they make more money. They are the Yankees we are the Cardinals.
By your definition I think the only way we can match their Margin is by growing to their size.
06-19-2013, 07:28 AM
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Originally Posted by FDXLAG
I guess it depends on your definition and use of margin, but I believe our profit to expense ratio is greater than UPS. As they are much larger than we are I have no doubt they make more money. They are the Yankees we are the Cardinals.
By your definition I think the only way we can match their Margin is by growing to their size.
By your definition I think the only way we can match their Margin is by growing to their size.
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