Fedex lowers guidance-Bringing Brown down with it

Discussion in 'UPS Discussions' started by brownmonster, Jun 18, 2008.

  1. brownmonster

    brownmonster Man of Great Wisdom

    FDX is opening at about 80 and bringing UPS down to 65 this morn. How do we seperate from these guys in the eyes of Wall Street?
     
  2. feeder53

    feeder53 ADKtrails

    I would just let the better company win, UPS has the history, if they can back it with the production, therefor I do everything I can to improve the UPS name.
     
  3. outamyway

    outamyway New Member

    We should get out of wall street. Have this company run by people who know what the hell is going on with it, instead of guys who don't live in the real world.
     
  4. MrFedEx

    MrFedEx Engorged Member

    FedEx has been viewed as an "indicator" stock for a long time on Wall Street, and the whole market took a tumble today as a result, not just UPS. Apparently, if FedEx is doing poorly, it "indicates" the entire spectrum of businesses in our economy must also be having problems. Seems like a broad brush approach that needs some revisions. It's only logical that fuel-intensive businesses like FedEx would be taking a hit right now. Duh!!!
     
  5. BrownSuit

    BrownSuit Active Member

    Like it or not, each company performs relatively the same service with a slightly different twist.

    Keep in mind that FedEx in part was having to write off expenses for re-branding FedEx Kinkos to FedEx Office.
     
  6. 1989

    1989 Well-Known Member

    Maybe before it's all over, ups will become cheaper than fdx.
     
  7. Mike Hawk

    Mike Hawk New Member

    Doesn't seem likely, with the whole contractor/non employee shenanigans. Perhaps once the IRS gets their back taxes and Fred has to deal with a union they will have to raise their cost of service to what UPS charges.
     
  8. DS

    DS Fenderbender

    AGREED! Imagine what ups could do if operations had the authority
    and the tools to service our customers no matter what some dude in Kentucky or wherever said ?We could be invincible.Drivers bringing in sales leads because they know the company will allow for the extra volume and hire enough people to do it right.
    We are a service company,and we fail in our promise when a big pickup gets missed,or we fail to deliver what we promised,its not our fault.
    Lets get back to basics.New motto...we deliver
     
  9. Coldworld

    Coldworld Well-Known Member

    look on you tube, there are some old ups air commercials that actually state that ups air services are 1/2 the price of fedex. Its interesting to ponder why ups just stood still and let fedex get so large...what the hell was ups thinking, does anyone have ideas why this happen? It cant all be because of Mr. Casey terminating the air back in the 30's. Like it or not, fedex has done outstanding in the 30+ years they have been around, and ups has just let it happen.
     
  10. BLACKBOX

    BLACKBOX Life is a Highway...

    This is an interesting post because I believe this is a crack in their financial base which will lead to an even bigger crack next quarter. People (Shippers) are looking for ways to save money and one of the things I've read is that shippers aren't sending packages overnight anymore unless they really have to which affects FEDEX main revenue source.

    I think you will see an increase of ground shipments for us knowing this is our strongpoint. I can see where people are reluctant to turn anything to FEDEX ground since many of the shipper's in my area are set up for UPS shipments.

    This may sound crazy but would Fred Smith in desperation perhaps have the Express side start delivering ground in order to fill their trucks?? or cut losses and keep ground only in big cities??

    This next quarter will be interesting for FEDEX and their shareholders.
     
  11. overallowed

    overallowed Active Member


    Fred can't have express delivering ground packages. They would lose their designation as an airline and become a common carrier, like us. They would be totally union within a couple of years. As an airline they are covered by the Railway Labor Agreement, which requires a national vote to unionize. This is how FedEx has stayed non union for this long. As a common carrier, they could vote on wheather to unionize by terminal.
     
  12. speeddemon

    speeddemon Guest

    Logic doesnt work at UPS. Sorta like why we didnt lose 240 million in the last quarter of last year, and Fredex did. Have a nive day.
     
  13. barnyard

    barnyard KTM rider Staff Member

    We have quite a few accounts in our center where Fedex does the air and we do everything else. Our salespeople are pushing hard for all the volume and if businesses are reducing their air, could be an easier sell.

    TB
     
  14. MrFedEx

    MrFedEx Engorged Member

    Smith is actually starting to move Express pkgs by Ground right now, and I'm not sure how he thinks he's going to get away with it. Besides pissing-off FedEx Express RTD's (Feeder Drivers), he's blurring the lines (again) of the independent contractor vs. employee issue. Express personnel are forbidden to touch Ground pkgs because we are "employees", yet it's OK for "independent" Ground contractors to move in-house freight? I've also read on this site that Ground is already moving freight from FedEx Freight, and displacing Freight drivers from their positions.
     
  15. overallowed

    overallowed Active Member


    I've seen FedEx express semis on the road for years. It makes economic sense for them to move short haul parcels over the road, and keep them off planes whenever possible, as ups has done the same thing for years. But express drivers still actually deliver them, and can't deliver ground, or FX loses their designation as an airline.
    As far as the "contractor vs. employee" issue hasn't Fred lost enough court cases on this that eventually this will not be an issue?
     
  16. Coldworld

    Coldworld Well-Known Member

    over, mr f, hasnt smith milked this suit out for a few years? Isnt the govt, and individual states looking into fedex owing back taxes...how long can he possible keep holding these things back...and were not even talking about the teamsters, which is a whole other thing all together.
     
  17. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Update--UPS is at $59.47 this morning (7/5). Of course, this does not become an issue until you either buy/sell as the loss is only on paper but it is most certainly cause for concern.
     
  18. filthpig

    filthpig Active Member

    Look at ti this way: if you don't already buy stock through the employee purchase program, now would be a good time to start. You get a 10% discount on your purchases.
     
  19. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    To clarify, you get 10% off of the lowest price of the previous quarter. Your payroll deductions are held and then used to purchase as many shares as your money will allow. I used to hold UPS stock but college costs were more important so I sold what I had.