Skip to comments.FedEx says economy is worsening, cuts outlook
Posted on 09/18/2012 7:29:42 AM PDT by listenhillary
FedEx Corp. says the global economy is worsening and it's cutting its forecast for the fiscal year ending in May.
The world's second largest package delivery company also said Tuesday that net income for the current quarter ending in November should fall well below last year's quarter. The stock lost about 2 percent in premarket trading.
The Memphis, Tenn. company now expects to earn between $6.20 and $6.60 per share for the full fiscal year, compared with a previous forecast of $6.90 to $7.40 per share.
FedEx is seeing a drop in demand for more expensive priority services. As the global economy has slowed, FedEx customers have switched to cheaper deferred delivery services. FedEx hasn't been able to cut costs fast enough to match the decline in demand.
(Excerpt) Read more at latimes.com ...
Yes, but under Bush FedEx almost went belly up. /s
I can just hear it now, what the Obamanistas are about to say in response to this.
Every time FedEx changes their outlook over the last few years, the GAO seems to adjust theirs as well.
“I can just hear it now, what the Obamanistas are about to say in response to this.”
People are taking note of our message! They are shipping packages Fed-ex ground instead of overnight thus reducing their carbon footprint. Isn’t it great?
Since the post office makes a profit on most of the junk and reduced-price bulk mailings and that they are ALSO running more negative on the budget side, I’d expect that Fedex’s assertions are true.....
Come to think of it, most junk mailings I’ve received in the past are significantly diminished now.
I read somewhere, probably here, that FedEx is a bellwether for economic forecasting..
I wonder what the status of the ghost fleet is.
This is the link to the actual report, without the LA Times “interpretation” included.
My business is very sensitive to the economy, and judging by recent receipts... we are falling into a double dip recession that probably wont be reported until after the election
This part of the statement is quite true.
Disability’s going to swamp the economy - or what’s left of it after ‘QE 200’ - people are afraid to buy anything until they know Obama’s out...
I thought it was underwear?
Oh my... This is quite UNEXPECTED! /sarc
What, no summer of recovery? Again?
I’ve been convinced for some time now that the entire Obama administration has been doing everything humanly possible to keep the economy on life support until after the election. I think that the bottom drops out in the first quarter of next year.
So are America’s truckers shipping freight around our country.
Well then, I better get out my old dusty recipe book on 101 ways how to make shoe and dirty old socks soup.
You watch, the moment the election is called and Romney won you will see the greatest spike in economic activity and those holding onto their money we have seen since Reagan.
I know this is anecdotal, but for the last year I have been driving from L.A. to Phoenix and back quite regularly and have definitely noticed a significant drop in trucking traffic, and a huge increase in the number of cars and more importantly, locos sitting idle at the Colton yard E of L.A..
What, might I ask, is it you do that’s sensitive to the economy?
Both FDX and UPS touch virtually every aspect of global GDP through their package delivery, trucking, air/ocean freight, and supply chain services. Both do detailed economic forecasting (FDX published theirs) because they are so active in the global economy.
Full disclousre, I used to work for UPS and covered FDX as a financial analyst for their competitive intelligence group.
“Like UPS, but unlike UPS, they’re a non-union business, so definitely one to support.”
As a former UPS’er and long time FReeper, this just doesn’t make any sense. The Teamsters had an idiot head back in 1997 when they struck but have been great since then. UPS is a very conservative organization that the VAST majority of people who reside here would love to work for. Don’t make the typical mistake of confusing union leadership with the employees.
I run a banquet hall where people book events about a year in advance. I have noticed over the years that people postpone their big events when things start to go south in the economy or will in the near future.
My business ships a lot of stuff, and FedEx and UPS drivers work very hard. Can’t say the same about the hostiles at the PO. For some reason, they see my patronage as an annoyance.
Yep. That is a union to be upset with. They have a typical government entitlement attitude. The issue is that for the longest time you could never be fired at the USPS. It was a lifetime job with fantastic retirement benefits. Of course that led to them losing $5 billion last quarter...