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FedEx says economy is worsening, cuts outlook
LA times ^ | 9/19/12 | Associated Press

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 ...


TOPICS: Business/Economy; Extended News; Government; News/Current Events
KEYWORDS: economy; fedex; obamanomics; recovery

1 posted on 09/18/2012 7:29:43 AM PDT by listenhillary
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To: listenhillary

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.


2 posted on 09/18/2012 7:33:17 AM PDT by DoughtyOne (Imagine how bad these global protests would be, if Obama hadn't won us so many new friends.)
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To: listenhillary

Every time FedEx changes their outlook over the last few years, the GAO seems to adjust theirs as well.


3 posted on 09/18/2012 7:36:38 AM PDT by Ingtar (Everyone complains about the weather, but only Liberals try to legislate it.)
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To: DoughtyOne

“I can just hear it now, what the Obamanistas are about to say in response to this.”

How about...
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?


4 posted on 09/18/2012 7:37:02 AM PDT by listenhillary (Courts, law enforcement, roads and national defense should be the extent of government)
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To: listenhillary

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.


5 posted on 09/18/2012 7:39:06 AM PDT by Gaffer
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To: listenhillary

I read somewhere, probably here, that FedEx is a bellwether for economic forecasting..


6 posted on 09/18/2012 7:39:17 AM PDT by cardinal4 (RageBoy for DNC Chair!)
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To: listenhillary

I wonder what the status of the ghost fleet is.


7 posted on 09/18/2012 7:39:43 AM PDT by DonaldC (A nation cannot stand in the absence of religious principle.)
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To: listenhillary

Gack! ;^)


8 posted on 09/18/2012 7:40:07 AM PDT by DoughtyOne (Imagine how bad these global protests would be, if Obama hadn't won us so many new friends.)
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To: listenhillary

http://investors.fedex.com/phoenix.zhtml?c=73289&p=irol-newsarticle&ID=1735313

This is the link to the actual report, without the LA Times “interpretation” included.


9 posted on 09/18/2012 7:40:13 AM PDT by Ingtar (Everyone complains about the weather, but only Liberals try to legislate it.)
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To: listenhillary

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


10 posted on 09/18/2012 7:42:31 AM PDT by TexasFreeper2009 (Obama lied .. the economy died.)
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To: listenhillary
They are shipping packages Fed-ex ground instead of overnight...

This part of the statement is quite true.

11 posted on 09/18/2012 7:43:50 AM PDT by Ingtar (Everyone complains about the weather, but only Liberals try to legislate it.)
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To: listenhillary

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...


12 posted on 09/18/2012 7:45:22 AM PDT by GOPJ (first they came for those clinging to their guns and religion, and I did not speak out....)
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To: cardinal4

I thought it was underwear?


13 posted on 09/18/2012 7:46:09 AM PDT by Dr. Ursus
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To: cardinal4
I read somewhere, probably here, that FedEx is a bellwether for economic forecasting..

Like UPS, but unlike UPS, they're a non-union business, so definitely one to support.
14 posted on 09/18/2012 7:50:40 AM PDT by TexasGunLover ("Either you're with us or you're with the terrorists."-- President George W. Bush)
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To: DoughtyOne

Oh my... This is quite UNEXPECTED! /sarc


15 posted on 09/18/2012 7:50:56 AM PDT by folkquest (Nothing is fool-proof because fools are so ingenious!)
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To: listenhillary

What, no summer of recovery? Again?


16 posted on 09/18/2012 7:50:56 AM PDT by Huskrrrr
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To: TexasFreeper2009

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.


17 posted on 09/18/2012 7:55:54 AM PDT by Obadiah (The Hunger Games -- Obama's vision for America)
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To: listenhillary
The private sector is doing just FINE
18 posted on 09/18/2012 8:21:12 AM PDT by traumer
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To: listenhillary
Canary in a coalmine.

When you see truckers saying that the economy is bad, and now companies like FEDX saying it's bad ? then it's bad.
The shipping, freight, and transportation sectors of our economy are the canarys in the coalmine of how our economy is performing.
19 posted on 09/18/2012 8:36:48 AM PDT by American Constitutionalist (The fool has said in his heart, " there is no GOD " ..)
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To: DoughtyOne
" I can just hear it now, what the Obamanistas are about to say in response to this. "

Be patient ? give him 4 more years ?
20 posted on 09/18/2012 8:38:12 AM PDT by American Constitutionalist (The fool has said in his heart, " there is no GOD " ..)
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To: cardinal4

So are America’s truckers shipping freight around our country.


21 posted on 09/18/2012 8:39:44 AM PDT by American Constitutionalist (The fool has said in his heart, " there is no GOD " ..)
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To: DonaldC

Well then, I better get out my old dusty recipe book on 101 ways how to make shoe and dirty old socks soup.


22 posted on 09/18/2012 8:41:47 AM PDT by American Constitutionalist (The fool has said in his heart, " there is no GOD " ..)
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To: TexasFreeper2009
" 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 " ......... of course....


Yup, your right, no bad economic news for old Obamay.
23 posted on 09/18/2012 8:43:14 AM PDT by American Constitutionalist (The fool has said in his heart, " there is no GOD " ..)
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To: GOPJ

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.


24 posted on 09/18/2012 8:45:50 AM PDT by American Constitutionalist (The fool has said in his heart, " there is no GOD " ..)
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To: American Constitutionalist
"So are America’s truckers shipping freight around our country."

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..

25 posted on 09/18/2012 9:08:16 AM PDT by Henchster (Free Republic - the BEST site on the web!)
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To: TexasFreeper2009

What, might I ask, is it you do that’s sensitive to the economy?


26 posted on 09/18/2012 10:18:28 AM PDT by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: cardinal4

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.


27 posted on 09/18/2012 10:23:54 AM PDT by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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To: TexasGunLover

“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.


28 posted on 09/18/2012 10:27:02 AM PDT by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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To: OneWingedShark

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.


29 posted on 09/18/2012 10:33:23 AM PDT by TexasFreeper2009 (Obama lied .. the economy died.)
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To: Wyatt's Torch

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.


30 posted on 09/18/2012 10:34:35 AM PDT by St_Thomas_Aquinas (Viva Christo Rey!)
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To: listenhillary

31 posted on 09/18/2012 10:35:08 AM PDT by timestax (Why not drug tests for the President AND all White Hut staff ? ? ?)
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To: St_Thomas_Aquinas
"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...

32 posted on 09/18/2012 10:48:04 AM PDT by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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