AMERICAS: FedEx says global recession bottomed out
Ã¢â‚¬Å“We have probably hit the bottom,Ã¢â‚¬Â said industry stalwart Fred Smith, chairman, president and CEO of FedEx Corporation while announcing the global express companyÃ¢â‚¬™s latest quarterlyearnings last week. FedExÃ¢â‚¬™s overall group revenue for the quarter ended 28 February was down 14 per cent year-on-year to US$8.14 billion while operating income fell 72 per cent to […]
April 1, 2009
FedExÃ¢â‚¬™s overall group revenue for the quarter ended 28 February was down 14 per cent year-on-year to US$8.14 billion while operating income fell 72 per cent to US$182 million, whilst net income also fell by nearly 72 per cent to US$97 million.
The Express business saw revenue drop by 18 per cent with operating income crashing to just US$45 million compared with US$425 million in the third quarter of the companyÃ¢â‚¬™s 2007/08 financial year. International Priority freight volume fell by 13 per cent, with declines across all global markets.
FedEx Ground was the only bright spot, resisting the general downward trend to grow revenue by 4 per cent to US$1.79 billion with an operating income up 15 per cent to US$196 million.
The company announced further cost-cutting measures, notably Ã¢â‚¬Å“capacity reductionsÃ¢â‚¬Â at FedEx Express and FedEx Freight, pay freezes, reductions in personnel to include staff outside the US and cuts in purchasing, which together are expected to save US$1 billion.