FedEx: Shares Fall After Soft Outlook And Missed Opportunity Of TNT

Discussion in 'The Latest FedEx Headlines' started by cheryl, Mar 23, 2012.

  1. cheryl

    cheryl I started this. Staff Member

    FedEx: Shares Fall After Soft Outlook And Missed Opportunity Of TNT - Seeking Alpha

    FedEx (FDX), a bellwether for the state of the economy reported its third quarter results Thursday. Investors are disappointed with the cautious outlook and send the shares 3.5% lower.

    FedEx is worried about the recession in Europe and the impact of continuing increasing oil prices on its business. It expects to continue to see a decline in volume prompting it to cut capacity both domestic and internationally by parking some of its freight airlines already.

    Some investors are disappointed with the decision to not make a counterbid for TNT Express as they point out that FedEx will have a strategic weak position in Europe for years to come.
     
  2. fedex_rtd

    fedex_rtd Active Member

    I think FedEx is saying that Europe will have a recession as an excuse for poor volume in Europe because UPS will be getting a greater share of that value due to the purchase of TNT Express. FedEx management made a poor decision and for once the share holders have to pay and not the hourly employees.