`Extremely difficult' times for U.S. courier

Discussion in 'Commerical Transportation' started by msantos, Jun 19, 2009.

  1. msantos

    msantos Eco Accelerometrist

    [​IMG] Fed-Ex Corp. said the next two quarters will be "extremely difficult"

    [fimg=LEFT]http://www.cleanmpg.com/photos/data/501/FedEx_Daily_Hybrid.jpg[/fimg]Staff - THESTAR - June 19, 2009

    Not surprisingly, this delivery business is not delivering the way it used to. I guess it will be far worse when they finally invent the teleporter ;) --Ed.

    DETROIT–Package delivery giant and U.S. economic bellwether Fed-Ex Corp. said the next two quarters will be "extremely difficult" as the recession and higher fuel prices bite into its bottom line.

    But CEO Fred Smith sees "signs that the worst of the recession is behind us."

    His statement said, "we remain optimistic that we will see quarter-over-quarter economic improvement later this calendar year."

    The package delivery firm posted a larger quarterly loss yesterday and an outlook below Wall Street estimates for the current period.

    Its shares fell 1.4 per cent to close 72 cents lower at $50.70 (U.S.) on the NYSE. FedEx forecast earnings per share of 30 to 45 cents for the current quarter. Analysts were expecting 70 cents.

    FedEx said its loss widened to $876 million, or $2.82 a share, in its fiscal fourth quarter ended May 31 from $241 million, or 78 cents a share, a year earlier.

    Excluding previously announced charges of $1.2 billion from two units, the firm reported a profit of 64 cents a share.

    Wall Street analysts on average had expected 51 cents per share.

    The charges stem from a decline in the fair value of home office supply chain Kinko's Inc, bought in 2004 and now called FedEx Office, and Watkins Motor Lines, a trucker bought in 2006, now known as FedEx National LTL. FedEx said stringent cost-cutting had mitigated the impact of the recession.

    FedEx, based in Memphis, Tenn., said its quarterly revenue was $7.85 billion, off more than 20 per cent from $9.87 billion a year ago.... [rm]http://www.thestar.com/article/652624[/rm]
     
  2. BailOut

    BailOut My favorite holiday is Earth Day!

    This is a good example of why I don't like living in a growth-based economy. It's not like FedEx doesn't have lots of business. It's not like they need to lay off people. It's not like they can't pay their bills.

    Yet simply because they aren't growing profits at a fast enough rate right now they are having "an extremely difficult time". :rolleyes:
     
  3. Damionk

    Damionk DWL Lover

    Actually, FedEx is having problems, with the recession and the possible changes to the RLA there is a possibility that FedEx would not make it out of this. FedEx is spending ridiculous amounts of money on stopping the changes to the RLA.

    UPS has lost some volume did lay off some people for a few weeks but ended up having to work most of them during that time (at least at my hub that was the case). I have seen the decrease in daily volume at work and it does seem to be slowly picking back up.
     
  4. Right Lane Cruiser

    Right Lane Cruiser Penguin of Notagascar

    What is the "RLA?"
     
  5. phoebeisis

    phoebeisis Well-Known Member

    Exactly-what is a RLA??
    Thanks,
    Charlie
     
  6. Damionk

    Damionk DWL Lover

    Railroad Labor Agreement. Currently FedEx operates under Aviation laws. Meaning that to be unionized it must be nationwide. UPS falls under the NLRA (National Labor Relations Act), meaning that each location can unionize separately. UPS's standpoint on this is that FedEx does the same job as UPS so they should follow the same laws. FedEx has been fighting against the union for some time now, not to mention that they often classify drivers (illegally) as independent contractors. If the law changes and individual shops can unionize and that drivers are correctly classified as employees FedEx is facing some major hurdles.
     
  7. Right Lane Cruiser

    Right Lane Cruiser Penguin of Notagascar

    Thanks for explaining!

    Sounds like a scary proposition for FedEx.
     
  8. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi All:

    ___I am with Brian on this one... The growth is not meeting targets so it becomes difficult?

    ___Damionk, it sure is nice to have a UPS insider of sorts on the forum. Thank you.

    ___Of the big three shipping companies, FedEx drivers are by far the most egregious at 10 to 20 over in the construction zones and 5 to 10 over everywhere else throughout Chicago. I have personally seen this hundreds of times within the last three years so it is condoned. UPS on the other hand are usually at the limit up to maybe 4 above and no more. Just imagine the fuel savings between the two and you have a UPS that will make it vs. a FedEx that is running into “more” difficulty...

    ___Good Luck

    ___Wayne
     
  9. Damionk

    Damionk DWL Lover

    Wayne, if the 3rd big shipping company you refer to is DHL, they have already left the country.

    ETA: By the way, there is no of sorts needed there Wayne. I have been working there since 2002. And, for anyone interested in what FedEx is trying to stop you can goto www.brownbailout.com. Just keep in mind that most of what is there is based on lies and deception. (eg. UPS is not asking for a bailout. They just make is seem as though we are.)
     
    Last edited: Jun 19, 2009

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