FedEx Announces Programs Targeting $1.7 Billion In Annual Profit Improvement by End of Fiscal 2016 David F. Rebholz to Retire as President, Chief Executive Officer, FedEx Ground MEMPHIS, Tenn., October 9, 2012 ... FedEx Corp. today announced programs targeting annual profitability improvement of $1.7 billion during the next three years, with a significant portion of the benefits achieved by fiscal 2015. These profit improvement initiatives do not include ongoing base profit improvements at FedEx Ground and FedEx Freight. FedEx also announced that David F. Rebholz, president and chief executive officer of FedEx Ground, will retire effective May 31, 2013. Rebholz, who will be 60 at the time of his retirement, has led the company's FedEx Ground operating unit since 2007 and also serves on the Strategic Management Committee of FedEx Corp. A successor will be named at a later date. In a keynote speech to FedEx Corp.'s 2012 Investors and Lenders Meeting, Frederick W. Smith, FedEx chairman, president and chief executive officer, also said the company intended to increase its dividends in years to come. Smith said a significant portion of the profitability improvement will come from cost reductions at FedEx Express and FedEx Services. He added that the profit improvement initiatives, along with the combined strength of FedEx Ground and FedEx Freight, would put FedEx on track to achieving its financial goals. FedEx executives plan to release further details of the profit improvement initiatives on Wednesday. To view details of the meeting, go to: http://investors.fedex.com . Cost reductions under way Smith said FedEx has many cost reduction activities underway and cited an improved information-technology function as one reason FedEx will be able to meet its goal of reducing costs. Smith said, "We are revamping the Express cost structure through a combination of cost reductions, efficiency improvements, and service repositioning." He cited cost reductions in selling, general and administrative (SG&A) expenses spread throughout the enterprise -- but particularly in FedEx Services and FedEx Express -- and improved information-technology function as additional reasons FedEx will be able to meet its goal of reducing costs. "Our overall strategy is closely tied to effective yield management," Smith said. "The key is striking the right balance between volume growth and yield improvements. With slow economic growth, however, the cost reduction programs we will describe tomorrow are also essential to achieve our financial goals." Confident of long term success "We are confident we will deliver the performance to ensure the near- and long-term success of FedEx," Smith said. "And, we believe we can do this even in low-growth environments for global trade and within the major economies." FedEx reaffirms its outlook for fiscal 2013 of $6.20 to $6.60 per diluted share, and second quarter earnings of $1.30 to $1.45 per diluted share. This guidance assumes the current outlook for fuel prices. The outlook does not include any costs or benefits related to the voluntary buyout program announced in August and which will be implemented in the second half of fiscal 2013. Rebholz to retire "Dave has done a tremendous job at FedEx Ground," Smith said. "Under his leadership, FedEx Ground has differentiated itself with industry-leading speed and outstanding service. FedEx Ground has grown rapidly and delivered incredible results during the past several years, and it is well positioned to continue that growth in the years ahead." Rebholz began his career with FedEx in 1976 as a part-time employee and moved into management in 1978. Prior to joining FedEx Ground, he spent 30 years with FedEx Express. He held a series of senior leadership positions and was named Executive Vice President, Operations and Systems Support in 1999. In that role, his responsibilities included Air Operations, U.S. Air-Ground and Freight Services, U.S. Ground Operations, Customer Service and Central Support Services. In that capacity, he managed more than half of the corporation's worldwide employment. FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $43 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 300,000 team members to remain "absolutely, positively" focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit http://news.van.fedex.com/ . Certain statements in this press release may be considered forward-looking statements, such as statements relating to management's views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate, legal challenges or changes related to FedEx Ground's owner-operators, new U.S. domestic or international government regulation, the impact from any terrorist activities or international conflicts, our ability to effectively operate, integrate and leverage acquired businesses, changes in fuel prices and currency exchange rates, our ability to match capacity to shifting volume levels and other factors which can be found in FedEx Corp.'s and its subsidiaries' press releases and filings with the SEC.
Posted On: 11/27/2012 8:12:51 AM
Post# of 102
(0)
(0)
Top 10 Most Recent Blog Posts
Small-Cap Stocks and Dow Outperform Amid Market Rebound
Category: Stocks Total Views: 185
By : Addison Perry Updated: 07-25-2024
Wall Street Indexes Rebound on Strong GDP Data
Thursday's main indexes on Wall Street climbed in response to better than expected GDP data. While the Dow and small-cap stocks lagged, the Nasdaq and S&P corrected early losses. After the tech mauling of the last session, this rise brought relief. On route to recoup Wednesday's losses, the Russell 2000 jumped 2%. Investors questioned whether the recent turn to underperformance made sense. Most megacap stocks were set to prolong losse... Continue Reading
Magnificent Seven Stocks Hit Hard by Earnings Reports
Category: Stocks Total Views: 139
By : Lucas Young Updated: 07-25-2024
Tech Giants' Earnings Disappoint, Sparking Market Selloff
Significant market selloff was started by Tesla and Alphabet's latest earnings releases. Investors worried about Tesla's lowest quarterly profit margin in five years. Anxiety about growing AI infrastructure costs and YouTube competition eclipsed Alphabet's better-than-expected earnings. With a tech-heavy Nasdaq Composite falling 3.6%, its worst day since October 2022. The S&P 500 likewise slumped 2.3%. This response... Continue Reading
SK Hynix Reports Record Profit Driven by AI Chip Demand
Category: Stocks Total Views: 141
By : Evelyn Baker Updated: 07-25-2024
SK Hynix Reports Highest Quarterly Profit Since 2018
SK Hynix declared its highest quarterly profit since 2018. For the quarter April–June, the company declared an operating profit of 5.47 trillion won. From the loss of 2.9 trillion won a year before, this is a notable increase. The profit lines up with LSEG SmartEstimate's projections. Analyzes projected a good performance from SK Hynix. Three straight profitable quarters have come from the company. This represents a notable comeba... Continue Reading
June New Home Sales Drop Despite Easing Mortgage Rates
Category: Real Estate Total Views: 126
By : Owen Jenkins Updated: 07-25-2024
New Home Sales Drop to Seven-Month Low in June
June's sales of newly built single-family homes dropped to a seven-month low. With a 0.6% drop noted by the Census Bureau of the Commerce Department, the seasonally adjusted annual rate comes to 617,000 units. Since November, this represents the lowest level. May's sales pace, on the other hand, was raised from the earlier stated 619,000 units to 621,000 units. This surprising decline in June sales is unambiguous evidence that the recover... Continue Reading
Lineage Raises $4.45B in Historic IPO, Valued at $18B
Category: Stocks Total Views: 132
By : Logan Wright Updated: 07-25-2024
Lineage Achieves Historic IPO with $4.45 Billion Raise
With its U.S. initial public offering, Lineage, the biggest cold-storage warehouse operator in the world, raised $4.45 billion. This is the largest worldwide stock market debut of this year. Pricing almost 57 million shares at $78 apiece comprised the IPO. At the top of its stated range, $70 to $82, this price was The company first intended to offer 47 million shares. Still, great demand resulted in the sale of extra shares. The IPO value... Continue Reading
Private Sector Employment Rises Despite Slower Momentum
Category: Economy Total Views: 280
By : Dylan Bailey Updated: 07-24-2024
U.S. Business Activity Hits 27-Month High in July
July's 27-month high in U.S. business activity suggests strong economic momentum. Rising from 54.8 in June to 55.0, the flash U.S. Composite PMI Output Index from S&P Global Since April 2022 this is the highest level. Tracking both manufacturing and services, the index has a reading above 50 suggesting growth. Driven by notable increases in the services sector, this consistent increase points to robust private sector expansion. The ris... Continue Reading
How to Protect Your Rental Real Estate Investment
Category: Real Estate Total Views: 279
By : Olivia Taylor Updated: 07-24-2024
Introduction to Protecting Your Rental Real Estate Investment
Renting real estate has become a go-to investment strategy these days. It's a good way to earn a consistent income and accumulate long-term wealth.
However, renting a real estate property comes with many risks. Your tenant can file a lawsuit against you, property damage risk and unforeseen circumstances can all spoil your investment success.
Therefore, be proactive in protecting your assets, and ensure a wise rental real ... Continue Reading
Weak Summer Demand, China Slowdown Hit Oil Markets
Category: Markets Total Views: 257
By : Thomas Cooper Updated: 07-24-2024
Oil Prices Edge Higher Amid Canadian Wildfires and Falling U.S. Crude Inventories
Though they stayed close to their six-week low, oil prices slightly rose on Wednesday. Prices started to rise following three consecutive sessions of drop. Falling U.S. crude inventories and supply concerns from Canadian wildfires were mostly responsible for this. September Brent crude futures climbed 66 cents to $81.67 a barrel. September U.S. West Texas Intermediate (WTI) crude rose by 78 cents to $77.74 per b... Continue Reading
Tax Disputes and Litigation: Strategies for Effective Resolution
Category: Personal Finance Total Views: 272
By : Kelly Martin Updated: 07-24-2024
Introduction to Managing and Resolving Tax Disputes
Tax disputes are an unavoidable aspect of business that can arise at any time and involve complex legal and financial issues. Whether it's a dispute over tax returns, audit findings, or tax assessments, the potential implications for a business can be significant, affecting not just financial stability but also the reputation of the company. Preparing effectively can make a substantial difference in the resolution process.
Preparing f... Continue Reading
3 Avoidable Marketing Mistakes Real Estate Startups Can Make
Category: Real Estate Total Views: 265
By : Ryan Hughes Updated: 07-24-2024
Introduction to Effective Marketing Strategies for Real Estate Startups
Starting a business is no easy feat. There’s less comfort in knowing that 90% of startups fail, according to 2024 data sourced from Exploding Topics. The same report found that new business success rates are 10 to 20% over the long term.
The odds against the real estate sector didn’t bode well. About 48% of real estate startups failed within four years. However, there’s still hope for aspiring entrepr... Continue Reading