FedEx 1Q More Than Doubles; 2Q View Cautious - Wall Street Journal
FedEx Corp. (FDX) said Thursday that fiscal first-quarter profit more than doubled and raised its full-year financial guidance, though international volume fell slightly short of expectations and the company announced a charge to restructure its domestic trucking business.
FedEx has introduced new planes to improve services between the U.S. and Asia, where eastbound volume has been driven by strong growth in shipments of electronics and other consumer products, and also is also bringing back planes parked in the desert to boost capacity.
But FedEx's loss-making domestic trucking unit continues to run up losses in the face of overcapacity and weak pricing. The company said Thursday that it will combine its FedEx Freight and FedEx National LTL operations at the end of January.
It expects to record $150 million to $200 million in charges in the next two quarters as it cuts its full-time employee count by 1,700, or some 5%, and closes 100 facilities.
FedEx Corp. (FDX) said Thursday that fiscal first-quarter profit more than doubled and raised its full-year financial guidance, though international volume fell slightly short of expectations and the company announced a charge to restructure its domestic trucking business.
FedEx has introduced new planes to improve services between the U.S. and Asia, where eastbound volume has been driven by strong growth in shipments of electronics and other consumer products, and also is also bringing back planes parked in the desert to boost capacity.
But FedEx's loss-making domestic trucking unit continues to run up losses in the face of overcapacity and weak pricing. The company said Thursday that it will combine its FedEx Freight and FedEx National LTL operations at the end of January.
It expects to record $150 million to $200 million in charges in the next two quarters as it cuts its full-time employee count by 1,700, or some 5%, and closes 100 facilities.
