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Interception
Providence Fan
Member since Nov 2008
11089 posts

FedEx: Disappointing Q3 Profit Sends Another Warning About Slowing Asian Growth

quote:

FedEx reported a quarterly profit that missed Wall Street expectations, a signal that customers worldwide continue to shift to cheaper transportation.

The package-delivery company says it will increase its cost-cutting program as a result and, starting next month, reduce its express business in Asia. FedEx hopes the slow-down will allow it to retire more aircraft.

Net income was $391.1 million, $1.23 a share, down from $427.5 million, $1.55 a share, a year earlier. Excluding one-time items, FedEx earned $1.13 a share. Analysts predicted $1.38 a share in earnings.

FedEx CEO Fred Smith blamed the disappointing quarter on continued weakness in the air freight business. Revenue in that unit was virtually flat at $1.2 billion. FedEx, a Dow component, competes chiefly with UPS and Deutsche Post-owned DHL, but its general financial health is often monitored by conditions in rail companies like Union Pacific and CSX Corp.

FedEx, the second largest package-delivery company, often serves as a measure of world economic conditions because its business stretches across 220 countries and moves more than 9 million packages daily. That FedEx will tamp down its Asian business reflects the slow-down in growth that the region faces.

FedEx, indeed, voiced a gloomy opinion about conditions worldwide, saying it expects the lackluster international business to continue.Revenue increased 3.7% to roughly $11 billion.


I always watch this stock closely because its usually one of those bellwether for the global economy.

ETA: Oracle up to bat next
This post was edited on 3/20 at 3:00 pm



dewster
Vanderbilt Fan
Pittsburgh
Member since Aug 2006
10123 posts

re: FedEx: Disappointing Q3 Profit Sends Another Warning About Slowing Asian Growth
FedEx has been buying out a number of their Memphis based employees. They are not quite in panic mode, but it's common knowledge around here that they are scaling back a little.


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donRANDOMnumbers
New Orleans Pelicans Fan
Lafayette Rouge
Member since Nov 2006
13058 posts

re: FedEx: Disappointing Q3 Profit Sends Another Warning About Slowing Asian Growth
Oracle missed as well. shite is about to implode.


Blakely Bimbo
Alabama Fan
Member since Dec 2010
1183 posts

re: FedEx: Disappointing Q3 Profit Sends Another Warning About Slowing Asian Growth
Oracle Trying to blame their sales force for the slump. Ellison needs to get his azz back to business.

I am more concerned about Airgas (ARG) warning as a measure of economic activity.

quote:

RADNOR, Pa. (AP) - Airgas, which supplies gases for industrial and medical uses and other equipment, said Thursday it may fall short of its fourth-quarter profit guidance because of weak sales.


[quote]LINK ]


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