FEDEX Earnings Report Call Transcript

[SmithBarney]

Found a fun/long read:
http://seekingalpha.com/article/276...sses-q4-2011-results-earnings-call-transcript
Granted these calls are made to paint FedEx in a good light for investors..
Lots of good stuff to read about Express and even Ground..
Anyway just thought I would share the link, and a quote below from the Q&A:

Keith Schoonmaker - Morningstar Inc.

I'm in interested in Mr. Smith's opinions on potential implications to the firm from some of the aggressive proposals we're seeing from the National Labor Relations Board, situations like Boeing selecting where it builds a plant or organizing election timing rules, please.

Frederick Smith

Well, I think rather than me opining on that because you're getting into an area of legal issues, let me ask our General Counsel, if you wouldn't mind, Christine Richards, to comment because she's more up to speed on those things than I am.

Christine Richards

As far as we're concerned, the recent announced rule changes that have been proposed will be something we're commenting on going forward. It is unfortunate that at a time where the commitment of this country to secret ballot elections and freedom of speech is well established that a federal agency would be undertaking changes that would do many things that would deprive employers of these basic rights. We're disappointed in the announcement that we expect today with respect to the National Labor Relations Board's proposed changes on elections, and we'll be commenting on those as we go forward.

 

[moreluck]

I still don't get the backward land of FDX......Thursday (Sept. 22) they will report earnings for 1Q 2012. In what world is it 2012 already ???

 

[vantexan]

I still don't get the backward land of FDX......Thursday (Sept. 22) they will report earnings for 1Q 2012. In what world is it 2012 already ???

Pretty common business practice. Fiscal year starts June 1st of previous year.

 

[vantexan]

According to that transcript operating income and margins will be substantially higher in 2012. Also international income for Express will soon be more than domestic income. What could possibly make FedEx much more profitable in 2012 in this economy? Could it be...

 

[MrFedEx]

Found a fun/long read:
http://seekingalpha.com/article/276...sses-q4-2011-results-earnings-call-transcript
Granted these calls are made to paint FedEx in a good light for investors..
Lots of good stuff to read about Express and even Ground..
Anyway just thought I would share the link, and a quote below from the Q&A:

Poor Fred. Now he's a "deprived" employer. Boo Hoo.

 

[59 Dano]

According to that transcript operating income and margins will be substantially higher in 2012. Also international income for Express will soon be more than domestic income. What could possibly make FedEx much more profitable in 2012 in this economy? Could it be...

TRANSFER OF ALL 2D/ES FREIGHT TO GROUND!!!

HA! Just kidding! They're going to expand as much as possible internationally. You can't cut yourself to long-term prosperity. You've got to develop your revenue streams. International shipping has a niiiiiiiiiice markup and there's plenty of room to grow direct service internationally such as what was recently announced for Columbia. There isn't a lot of room for growth here. Some people are hooked on UPS; others are hooked on us. Pricing is competitive enough overall that you won't get too many who jump to us or from us because of price as long as they are getting great service. Big enough gains that are made internationally will take some pressure off of domestic ops.

 

[vantexan]

...International shipping has a niiiiiiiiiice markup and there's plenty of room to grow direct service internationally such as what was recently announced for Columbia....

Had no idea Washington, D.C. was outside of the country. Now if they'd only develop markets like COLOMBIA, we'd see a nice bump in profit there...

 

[Cactus]

Pricing is competitive enough overall that you won't get too many who jump to us or from us because of price as long as they are getting great service.

What great service?

With engineering and Wall Street calling all the shots, the days of great service are a thing of the past.

 

[MrFedEx]

TRANSFER OF ALL 2D/ES FREIGHT TO GROUND!!!

HA! Just kidding! They're going to expand as much as possible internationally. You can't cut yourself to long-term prosperity. You've got to develop your revenue streams. International shipping has a niiiiiiiiiice markup and there's plenty of room to grow direct service internationally such as what was recently announced for Columbia. There isn't a lot of room for growth here. Some people are hooked on UPS; others are hooked on us. Pricing is competitive enough overall that you won't get too many who jump to us or from us because of price as long as they are getting great service. Big enough gains that are made internationally will take some pressure off of domestic ops.

Our service sucks, and International volumes have also been down lately. Maybe Fred can get the cocaine contract in Bogota (that's in Colombia, you know) and improve his revenue stream. Keep on receiving that Purple Promise where the sun doesn't shine, won't you?