Home
News
In Focus
Business
Metro
Nation
World
Sports
Feature
Opinion
View more »Opinion Columns
Wan LixinOpinion deputy editor of Shanghai Daily
Restaurants get off to a quick start thanks to game-changing policies
High service charges on event ticket refunds call for further regulation
Sunday
- Subscribe
Related News
FedEx wields the ax again as profit falls
Source: Agencies |
March 20, 2009, Friday
|
Print Edition
Print Edition
FEDEX Corp yesterday said it plans to cut more jobs and trim wages again, as the company reported its fiscal third-quarter profit tumbled 75 percent on severe weakness in the global economy.
The Memphis, Tennessee-based company, often seen as a bellwether for the United States economy, said it earned US$97 million, or 31 US cents per share, compared with US$393 million, or US$1.26 a year earlier. Revenue fell 14 percent to US$8.14 billion, from US$9.44 billion. Analysts polled by Thomson Reuters expected profit of 46 cents per share on revenue of US$8.65 billion.
"Our financial performance was sharply lower during the quarter due to the global recession," Chairman, President and Chief Executive Frederick W. Smith said in a statement. "While we are gaining market share in all of our transportation segments, the downturn in our industry and the severity and expected duration of the recession require that we take additional actions."
FedEx Express segment sales fell 18 percent to US$5.05 billion in the third quarter, as weak package volume offset the benefit of higher prices. Unit operating income plunged 89 percent to US$45 million. The segment has been hit hard as consumers choose less expensive and slower shipping options.
The delivery company's ground segment, which benefited from the sharp scale back of rival DHL and a delivery deal with the US Postal Service, saw operating income rise 15 percent to US$196 million. Revenue rose 4 percent to US$1.79 billion.
To further reduce costs, FedEx plans to cut more jobs - although it didn't say how many. It also plans to scale back some workers' hours and wages and trim air and truck capacity. The firm said it will not shrink its delivery network in any area.
Three months ago, FedEx disclosed broad-based cost cuts, including a 20-percent pay cut for Smith, a 7.5 to 10-percent cut for other executives and a 5-percent cut for thousands of others.
The Memphis, Tennessee-based company, often seen as a bellwether for the United States economy, said it earned US$97 million, or 31 US cents per share, compared with US$393 million, or US$1.26 a year earlier. Revenue fell 14 percent to US$8.14 billion, from US$9.44 billion. Analysts polled by Thomson Reuters expected profit of 46 cents per share on revenue of US$8.65 billion.
"Our financial performance was sharply lower during the quarter due to the global recession," Chairman, President and Chief Executive Frederick W. Smith said in a statement. "While we are gaining market share in all of our transportation segments, the downturn in our industry and the severity and expected duration of the recession require that we take additional actions."
FedEx Express segment sales fell 18 percent to US$5.05 billion in the third quarter, as weak package volume offset the benefit of higher prices. Unit operating income plunged 89 percent to US$45 million. The segment has been hit hard as consumers choose less expensive and slower shipping options.
The delivery company's ground segment, which benefited from the sharp scale back of rival DHL and a delivery deal with the US Postal Service, saw operating income rise 15 percent to US$196 million. Revenue rose 4 percent to US$1.79 billion.
To further reduce costs, FedEx plans to cut more jobs - although it didn't say how many. It also plans to scale back some workers' hours and wages and trim air and truck capacity. The firm said it will not shrink its delivery network in any area.
Three months ago, FedEx disclosed broad-based cost cuts, including a 20-percent pay cut for Smith, a 7.5 to 10-percent cut for other executives and a 5-percent cut for thousands of others.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
