Tie VS Monte

Discussion in 'Current Events' started by dannyboy, Feb 7, 2006.

  1. dannyboy

    dannyboy From the promised LAND

    HEre you go. Your own thread. Slap away. This is your own play room, no holds barred!

    d
     
  2. montecarlo12

    montecarlo12 Member

    Danny,
    hahahahahaha........thanks man. Its to much like hitting a heavy bag though because he cant back up anything he posts. He has T-REX arms. Kinda takes the fun out of it for me.
     
  3. dannyboy

    dannyboy From the promised LAND

    Tie and I have had our rounds. he is much better after the second round.....of beers. Not really a bad guy. Just bleeds brown more than most.

    d
     
  4. tieguy

    tieguy Banned

    I'm sorry I don't know what I would possibly have to continue here. As I said I am glad monte is happy with the crappy quarter and loss of volume that fdx experienced. Its good to see such complacency on his part I just hope his attitude is representative of the entire fdx organization so we can clean house quickly.
     
  5. montecarlo12

    montecarlo12 Member

    Tieguy,
    Do you think Fedex had a bad 2nd quarter or are you posting as a fact?
    For the 2nd quarter revenue was up 10% from previous year. Operating income was up 32% and net income was up 33%. I also remember reading that Fedex exceeded original forecast for the 2nd quarter and increased its earnings guidance for the 3rd and 4th Quarters. Fedex had another good peak season and I think you will see it will reflect in the 3rd quarter which ends at the end of February.

    Tie,
    Do you want to try again??? I know UPS had a strong peak this year but didnt I read that UPS missed its original forecast for the quarter ???
     
  6. tieguy

    tieguy Banned

    Monte whats the question? I'm happy you're happy with your results. Keep up the good work.
     
  7. tieguy

    tieguy Banned

    But just in case you really care. Tell me what percentage your volume grew at. Then tell me what rate the economy grew at.
     
  8. montecarlo12

    montecarlo12 Member

    tieguy,
    I dont want to put words in your mouth. Was your "crappy quarter" remark your opinion or was it another one of your facts? Lets take our discussion one step at a time so we dont have to go backwards. fair enough?
     
  9. montecarlo12

    montecarlo12 Member

    Tieguy,
    your last question was very vauge so Ill try to help you.
    Info from Fedex.com under (earnings release)

    Fedex Express (company I Work For)
    International priority daily express package volume grew 8% year over year for the 2nd quarter. Domestic express package grew 1% year over year for 2nd quarter (which gives you a 9% package volume increase for Fedex Express for the 2nd Quarter year over year.)

    Fedex Ground,
    Daily ground package volume grew 4% year over year for 2nd quarter.

    Tie guy,
    that will give you a combined package volume increase of 13% for the 2nd quarter year over year.:clap:

    If you want to take it a step further you will see that the TOTAL COMBINED DAILY PACKAGE VOLUME INCREASED BY 3% OVER LAST YEARS SWEET 2ND QUARTER NUMBERS.
     
  10. tieguy

    tieguy Banned

    Sure bud I'll become your best friend and discuss this in detail with you on your terms after you had the balls to jump onto another thread unprovoked and accuse me of playing with the truth. Kind of like you just did here. Congrats on your terrific quarter hope you maintain your current trends.
     
  11. montecarlo12

    montecarlo12 Member

    Tieguy,
    as you can see Fedex had a great 2nd quarter. Lets take this a step further and see if you are correct about fedex losing package volume or customers like you claim. Fedex 3rd quarter begins Dec. 1st and ends Feb.28 which you can see includes our peak volume. Do you think Fedex will exceed 3rd quarter earnings forecast or do you think it will fall short like UPS's 4th quarter? Remember that Fedex even increased its earnings guidance for the 3rd and 4th quarters when it released its strong 2nd quarter earnings.
     
  12. montecarlo12

    montecarlo12 Member

    tieguy,
    lets chat, Relax....this conversation isnt on my terms. This is an equal forum and you asked me a question so I got you the info and posted it for you.You can cut and paste it from Fedex.com and show me where I have been dishonest. I asked you a few questions and I hope you will take the time to answer for me. You did want me to take the 2nd quarter package volume and compare it to the rate that the economy grew. Can you give me a date or time frame? 2nd quarter began Sept.1st and ended Nov.30
     
  13. tieguy

    tieguy Banned

    [FONT=verdana,geneva,sans-serif][SIZE=-2]​
    [/SIZE][/FONT]
    Earnings release. Shows fdx volume overall grew 3 percent. GDP for the year 2005 coming in around 3.5 percent. That means fdx volume grew less then the economy.

    Press ReleaseSource: FedEx Corporation
    FedEx Net Income Surges 33 Percent
    Wednesday December 21, 7:50 am ET Annual Earnings Outlook Raised
    MEMPHIS, Tenn.--(BUSINESS WIRE)--Dec. 21, 2005--FedEx Corporation (NYSE: FDX - News) today reported earnings of $1.53 per diluted share for the second quarter ended November 30, compared to $1.15 per diluted share a year ago, an increase of 33%.
    FedEx Corp. reported the following consolidated results for the second quarter:
    • Revenue of $8.09 billion, up 10% from $7.33 billion the previous year
    • Operating income of $790 million, up 32% from $600 million a year ago
    • Operating margin of 9.8%, up from last year's 8.2%
    • Net income of $471 million, up 33% from $354 million the previous year
    "Customer demand for our broad portfolio of transportation services, a disciplined pricing approach by FedEx and strong productivity gains led to a sharp improvement in our operating margins," said Frederick W. Smith, chairman, president and chief executive officer. "FedEx is also benefiting from solid economic growth year over year in the U.S. and Asian economies, which we expect to continue in 2006."
    Last year's second quarter included two one-time items which negatively affected earnings by a net $0.06 per share: A one-time charge of $48 million or $0.10 per diluted share related to the company's claim for compensation under the Air Transportation Safety and System Stabilization Act, partially offset by a $0.04 per diluted share tax benefit resulting from the passage of the American Jobs Creation Act of 2004.
    Total combined average daily package volume at FedEx Express and FedEx Ground grew 3% year over year for the quarter, led by improved international express package growth. Yield management actions in U.S. deferred services at FedEx Express to improve profitability boosted yields while resulting in lower volume. FedEx Ground volumes were weaker than expected, but strengthened in the last two weeks of November and continue to strengthen in December. The higher FedEx Ground growth trend is expected to continue in the second half of the fiscal year.
    Outlook
    FedEx expects third quarter earnings to be $1.15 to $1.30 per diluted share. The company increased its earnings guidance for the year to $5.45 to $5.70 per diluted share from its previous guidance of $5.25 to $5.50 per diluted share, which includes the net effect of a $0.15 per share lease accounting charge in the first quarter. Excluding the impact of the lease accounting charge, earnings for the year are expected to be $5.60 to $5.85 per diluted share. The capital spending forecast for fiscal 2006 remains approximately $2.5 billion.
    "We exceeded our original forecast for the second quarter due to outstanding operational performance and the deferral of certain advertising and promotional expenses to the second half of the fiscal year," said Alan B. Graf, Jr., executive vice president and chief financial officer. "Our increased earnings guidance for the full year reflects confidence in our ability to continue executing our business strategy, manage our cost structure and leverage sustained economic growth."
    FedEx Express Segment
    For the second quarter, the FedEx Express segment reported:
    • Revenue of $5.37 billion, up 11% from last year's $4.83 billion
    • Operating income of $476 million, up 43% from $333 million a year ago
    • Operating margin of 8.9%, up from 6.9% the previous year
    FedEx International Priority (IP) revenue grew 14% for the quarter. IP average daily package volume grew 8%, due to strong growth in Asia and Europe and continuing growth in U.S. export. IP revenue per package grew 5%, primarily due to higher fuel surcharges. U.S. domestic express package revenue increased 8%, as U.S. domestic revenue per package increased 7% and U.S. domestic volume increased 1%. The increase in U.S. domestic revenue per package was mainly driven by higher fuel surcharges and an increase in average rate per pound. FedEx Express operating margin improved significantly year over year, benefiting from solid growth in IP revenue and significant improvement in productivity. Also, last year's operating margin was negatively affected by the one-time charge related to the company's claim for compensation under the Air Transportation Safety and System Stabilization Act.
     
  14. tieguy

    tieguy Banned

    how did fdx increase their profits? One analysts answer was:

    The average estimates of analysts polled by Thomson First Call were for earnings of $1.40 a share on revenue of $8.07 billion.
    "The major contributing factors were the fuel surcharges, which have really helped revenue growth ... and pretty strong volume growth in the international business," said Zacks Investment Research analyst Ann Heffron. "It was a very strong quarter."

    How long I wonder before your shippers figure out that your fuel charges which should be used to offset the high cost of fuel is actually being used to inflate fdx's profit results?

    I saw a nice little presentation at a meeting I attended last year that showed how fdx works the pricing.

    Fdx publishes rates that are almost a dollar cheaper than ups. However by the time you throw in all the surcharges fdx puts on each delivery such as the fuel and residential surcharges it was actually more expensive to ship the package with fdx then ups.

    The question is how long before your shippers figure out how the game is played. I'm sure many of your shippers read the finance section and possibly saw the quote from Ann Hefron that credited your fuel surcharges for the improvement in profit.
     
  15. tieguy

    tieguy Banned

    Two things I have personally seen that makes me question your results are this:

    1) I have seen many large volume shippers switch to UPS in the past two years. Many of these shipping a lot of high revenue next day air packages. I have not seen us win so much business since the old days of RPS ground.

    2) Fdx's ground strategy is to build heavily east of the mississippi. One of the first buildings they opened up is in Hagerstown maryland. At this point that building has been open for close to a year and yet fdx has not won any new business of a significant size to fill that new building up. Your capital expenditures get to be quite a financial drain when they are under utilized.

    So to summarize. Fdx was making significant volume gains each quarter. This last quarter shows overall growth at less than what the economy grew. I see many large volume high revenue shippers leaving fdx because they were dissatisfied with the service. I see new buildings opening up and not being filled which will put quite a drain on your profit picture. I see surcharges possibly propping up profit results. I think investors are starting to figure this out which might explain why your stock did a nice pop on day one of earnings and has since floundered. If your company truly put the controls in place to gain a true 33 percent improvement on profit than your stock should have jumped about a minimum of 15 to 20 bucks a share. I rest my case.
     
  16. montecarlo12

    montecarlo12 Member

    Tie,
    read the first 6 lines of the last paragraph.
    then read the paragraph under Fedex ground. 13% package volume increase over last years 2nd quarter
     
  17. montecarlo12

    montecarlo12 Member

    Fedex Express
    International priority daily express package volume grew 8% year over year for the 2nd quarter. Domestic express package grew 1% year over year for 2nd quarter (which gives you a 9% package volume increase for Fedex Express for the 2nd Quarter year over year.)

    Fedex Ground,
    Daily ground package volume grew 4% year over year for 2nd quarter.

    Tie guy,
    that will give you a combined package volume increase of 13% for the 2nd quarter year over year.:clap:

    If you want to take it a step further you will see that the TOTAL COMBINED DAILY PACKAGE VOLUME INCREASED BY 3% OVER LAST YEARS SWEET 2ND QUARTER NUMBERS.[/quote]

    Have you figured it out yet, breaks everything down for you in the article
    look at the package volume numbers from the year before in the second quarter. It had a combined volume increase of 8% from the year before. this years number improved 3% over last years 8% Its not rocket science Tie
     
  18. montecarlo12

    montecarlo12 Member

    Tieguy.
    you are a manager correct?? you cant even read a earnings report and understand what it is that you are reading. Now you want to compare the growth of the 2005 economy with Fedex growth numbers for the year, and our 4th quarter doesnt even end until May 31. Damn....were not even done with our 3rd quarter and are still waiting for our peak season numbers. You are lost huh??
     
  19. tieguy

    tieguy Banned

    "Total combined average daily package volume at FedEx Express and FedEx Ground grew 3% year over year for the quarter, led by improved international express package growth."

    Monte, I don't understand ? Are you disputing the above quote which allegedly came from fdx on your recent earnings statement?
     
  20. tieguy

    tieguy Banned

    Thus why I really don't even want to discuss the issue with you. The quote above is pretty cut and dried. Either its true or its not. If its true then fdx is in a position it has not seen in the last year of near stagnant volume growth. Anyone can get that information from your press release. And yet here again you're attacking me for referencing what came out of your press release. I didn't create the number . If its true and you keep trying to find different ways to present the same number to me then there is no need to attack me for referencing it.
     
    Last edited: Feb 9, 2006