FedEx 3rd Qtr Earnings

Discussion in 'UPS Freight' started by upsdawg, Mar 22, 2006.

  1. upsdawg

    upsdawg UPSDAWG

    UPS rival FedEx posts 35 percent profit jump
    Wednesday March 22, 11:06 am ET

    United Parcel Service Inc. competitor FedEx Corp. reported a 35 percent increase in its fiscal third-quarter profit on Wednesday.
    For the quarter ended Feb. 28, Memphis, Tenn.-based FedEx's net income rose to $428 million, or $1.38 a share, from $317 million, or $1.03 a share, a year ago.

    Sales rose 9 percent to $8 billion.

    FedEx (NYSE: FDX - News) attributed the increases to a combination of a better-than-expected holiday season, global economic growth, price increases and lower-than-expected fuel costs.

    In January, UPS reported a 21 percent jump in its fourth-quarter profit. The company earned $1.05 billion, or 95 cents a share, in the quarter, compared with $866 million, or 76 cents a share, a year ago. Sales rose 21.5 percent to $11.95 billion.

    Atlanta-based UPS (NYSE: UPS - News) bases its UPS Airlines division at Louisville International Airport.

    *****Looks like Fed Ex had a good 3rd Qtr and I have been watching their stock price go down and UPS up a little.Some of the articles indicate that even though they posted good numbers, the forcast for the remaining of the year was not to Wall Street expectations.Their growth was 20% ,but the Transportation Sector has risen 22%.

    So the question is how much business are we going to lose to Fed Ex because they can offer lower rates to customers---because their cost to serve is lower, being non-union and subcontracting everything out??
    Last edited: Mar 22, 2006
  2. theAnti-X

    theAnti-X Guest

    Fedex stock is overvalued. Once the "independent contractors" become classified as employees and Mr. Fred has to pay for their vehicles, insurance, fuel, etc. his house of cards will come tumbling down. He is employing slave labor to deliver his ground and home delivery packages. If these ICs have their way, ground labor costs will rise substantially and Fedex, as well as Wall Street, will see through the purple haze that Fred Smith has successfully fogged everyone over with.
    UPS will have slow, stable financial growth because they are a conservative company unlike Fedex.
    The key is their "cost to serve". True, their costs are cheaper but with all the litigation going on about classification of "employees" or not, it's going to catch up with fedex. The costs involved, i.e., with having non-unionized contractors is bound to catch up with them also. Missed pick-ups, non-deliveries, crappy service--you get what you pay for. Look at website and read the blogs over there from drivers fed up with Fedex. Not as rosy as Mr. Fred likes us to believe.
  3. the Anti-X

    Typical response. You should be worried,FedEx has been kicking your "Bleep" since we started expanding into Ground,Freight and all the segments we are currently involved with. Yes, you guys are slow and conservative, that's why you can't make a dent in our express business. Try asking any sales rep why UPS can't sell express vs FDX, you guys have a stigma that "Brown" can't do anything but ground.

    You'll see a "Changing of the Guard" in ground these next couple years. I notice more FDX ground and DHL trucks where UPS used to be the only ones. We are going in the right direction....up, up and away. Good Luck in your FedEx bashings... we all need a good laugh.
  4. theAnti X

    theAnti X Guest

    The laugh will be right back at you "brown observer" or should I say UPS wannabe driver. I guess you've had your share of the purple kool-aid that they feed you as well as believe in the propoganda that Fred continues to feed you. I'm not worried about a thing because Fredex is digging his own (and his core business-Express division's) grave. Once his ICs in ground and home delivery become legitimate employees by name, they will realize that they should get threir fuel and benefits and supplies and vehicle maintenance and everything else from their company. It may have been Fredex's only shot at competing with the big boys but it is going to fail as bad as ZapMail. Take a look at and tell me everyone over there in purpleville is happy with how Fred is treating his employees and his "employees" in ground and HD. Keep living in your purple haze, because when the smoke clears, Fredex stock is going to drop like the dot coms.
  5. Uncle Rico

    Uncle Rico New Member

    Once the stigma gets out that FDX will have to include its independent workforce in his "family of employees", his labor costs will rise ten-fold. Will that have any effect on stock price?
    I did not realize that FDX sold express. I thought it was FedEx Express division that did the overnight business. Fred Smith is raping his Express division and giving it to his non-"employee" ICs. That's corporate America today. If he could have everything run through Mexico or China and have it done cheaper he probably would. But then again, he's prbably one of those flag waving stand up guys who lets his cronies make millions in stock but his average employee can't get a 50 cent raise to feed his family.
    I agree with the antiX. You, Mr. "observer", sound as if you are a brown "wannabe" brainwashed by the purple haze. Zap mail will look like a blip compared to the hit FDX Corporation will take in the near future.
  6. moreluck

    moreluck golden ticket member

    I too think FDX is in for a downfall. I'm still trying to figure out how these earnings are for the 3rd Quarter of '06, when for "normal" folks the 3rd quarter of '06 is in the in hasn't happened yet!

    The whole thing with the 7 or so different companies and the discomboobulated quarters reeks of juggling numbers to me. As you all know, juggling numbers may work for awhile but eventually that will catch up with you and bring you down.

    I'll take our little "penny" of growth in the stock today.......FDX can have the - $1.44.

    [MOUSE]Go UPS !![/MOUSE]
  7. tieguy

    tieguy Banned

    observer I think you need to take another look at your express volume. Only up 1 percent in the last year. Domestic express down 3 percent for the quarter.
  8. Yes, I agree FDX is making millions, but I also like the fact that the company is investing those millions into FDX. Just look at the FDX news, terminals are expanding (both ground and freight), new Hubs being built domestic and Internationally and technology at the highest levels. This is what's going to be needed if you want to compete in the future.........

    Like Jim Cramer of Mad Money says..It's not where your company (stock) has been but where your company (stock) is going..

    Last but not least, Whats the deal on your stock? Big company, Lots of Money,.....somethings not right...

    Saw a sup riding with your driver today with a stopwatch....poor old guy..........making him hustle like that...too funny...
  9. Hangingon

    Hangingon New Member

    You do realize both our companies are based on performance? Granted FedexExp doesn't have to do the same numbers we do, mostly since their stops are not as concentrated as ours, but they also are ridden about numbers. Not many service companies left in the country that allow their employees to work at a self directed pace with no input from management.

    As far as reinvesting both companies are doing it, you have to to stay competitive. Are you hourly or management at FedEx? Or just a Fredophile?
  10. moreluck

    moreluck golden ticket member

    Looking at FDX stock yesterday and today.....someone else is questioning if the 'house' is in order too.:wink:
  11. upsdawg

    upsdawg UPSDAWG

    The old can fool all of the people some of the time and some of the people all the time.What is happening at RPS, or Viking...yes, you can cal it FedEx----but they are still the same Independant Contractors with a different paint job.It will catch up with FedEx and when it does we will see what their SPIN is--they will probably still get by unscathed by the powers to be at Wall Street.

    Time will tell------until then let's keep kicking their ass with better service and see if we can continue to gain market share in the Supply Chain arean--a $300 Billion industry-----let FedEx have some small profit ground business, while we are tapping into their Express business and Int'l business!!
  12. Uncle Rico

    Uncle Rico New Member
    brown observer: Read what their own employees are saying about Fredex. The dog and pony show he touts as a business in front of Wall Street is going to crash and burn. Once those ICs in ground and home delivery get "employee" status they aren't going to stop there. I would think, not being a financial whiz, that when labor costs start to rise significantly due to adding thousands of new employees, Fredex won't be able to play his shell game anymore. Duh, any company can make a profit, thus show huge earnings, thus stock price climbs, when you're using ICs to do the work. Smoke and mirrors ain't gonna cut it when people start seeing his profits are accumulated in an Enron-esque manner.:w00t: :detective:death:
  13. upsdawg

    upsdawg UPSDAWG

    Wal Mart--which I feel is a great example of American Free Enterprise , is getting beat up in the press for not offering adequate health coverage for its employees--------so they should just hire these people as Independant Contractors and use the same muse as FedEx--------not all of them are unhappy and they operate under a different set of guidelines---so what if they all wear Blue Wal Mart uniforms---no really they are not employees, they are IC's!!

    Reminds me of the old saying---if it walks like a duck and quacks like a duck...........
  14. pemanager

    pemanager Member