Discussion in 'FedEx Discussions' started by spitt2000, Sep 21, 2006.
And the reason they are down presently is because after reporting their earnings they used the word "BUT".
It's just like when the FED reports interest rates.......it's not the rise or fall being reported, but the sentiment that follows that moves the markets.
another strong quarter for the good guys!!
Who are these "good guys" you refer to? Fred S and his boys who claim to make dramatic increases in profits yet don't share them with you?
Investors responded negatively to the "good news" It appears they are seeing past the smoke and mirrors of a Fdx earnings presentation.
They don't want to tell you how they achieved those numbers. Fedex Express is being raped by its own cousin company fedex Ground and Home Delivery who are independent contractors. You shovel more and more of you business through this zero labor cost business plan, and yes your "profits" go up.
Just wait, oh man just wait until all those class action lawsuits are awarded to the independent contractors and then the proverbial snowball starts rolling. Fred:*******: is either going to have to pay these ICs big money or accept them as "employees" thus taking on huge labor costs as well as benefits, vehicular maintenance, and on and on that he currently has the IC pay for. I don't think he has that kind of cash laying around like UPS does. One day his business model will implode on him and the stock prices and dividends will be in the pennies, his earnings in single digit numbers.
This is why UPS says they are not worried, they are looking into the long term..
I get a kick out of how these ups people can't admit FDX is kicking their butt. We are on a roll, and this is just the beginniing. I hope you guys don't have another disasterous quarter, don't know how your company can afford you high priced drivers. Thats going to change though...in the years to come the Union is going to ask for concessions for you guys to stay competitive. Thats when the fireworks will begin.
If "kicking our but" is announcing a "40 percent gain" in profits and then watching the stock drop two bucks a share then keep kicking that but.
By the way a real 40 percent gain in profits coupled with the rapid decline in fuel prices should have sent your stock through the roof. The investors saw something they did not like.
"Percentages" can be misleading. If UPS and FEDEX were neck to neck in revenues then a huge "percentage" advantage would be significant. But, conceivably UPS could enjoy a big "real dollar" advantage on a lower "percentage" report. For instance, if you had $100.00 and had a 10% increase, you gained $10.00. If I had $400.00 and had a 5% increase, I gained $20.00. Same applies to package increases. Don't go gaga over percentages. If UPS had, say, a 40% increase in pkgs, FEDEX would be EX-FEDEX.
FedEx to spend $2.6 bln to replace fleet
By Ana Campoy
Last Update: Sep 25, 2006
FDX ) on Monday said it will spend $2.6 billion in a multi-year program to buy and modify about 90 Boeing Co 757-200 aircraft to replace FedEx Express's fleet of Boeing 727-200s. The company said it doesn't expect the program to materially affect earnings. Replacing the planes will result in lower operating costs and reduce green house emissions, it added. FedEx included the capital impact of the program on the current fiscal year in its first-quarter earnings release. It added that its capital spending forecast for 2007 remains at $3 billion. FedEx Express expects to bring the new aircraft into service between 2008 and 2016.
UPS is boring, anyone who works for the company knows that. For 99 years boring has equaled long term success. I'm cool with no headline grabbing numbers like 40% increase in earnings, don't need a big splash to be successful.
Smoke and mirrors. Fred S will be doing time shortly with the Enron dude. Oh I forgot, he died in jail. Sucks to be him.
After spending 18 years with a company I was proud to work for only to find out Ive been in a bad relationship since day 1.......Boy was I naive...Fedex Express has NO RESPECT for their hourly employees. They use us around the holidays and summer comes and your burnt toast. Salaried employees do not have to modify their diets only the idiots that go out and break their backs for this company. Bitter do you think ? Absolutely......Wait until your knees and hips start killing you along with your back and they will do everything possible to get rid of you. Life span of a courier is 10 years on the job than they know body parts start failing. So stop your bull about which company is better....Bottom line is profit for both ..... Oh and by the way Fedex Ground drivers......Good Luck
I agree with chump 100%. I worked on Ground side for nearly 2.5 years as both a package handler and a service manager. It seems everyone I have talked to, upon hearing that I work for Fedex, say "thats great, aren't they an awesome company?" Maybe in the past, but not now. I worked for both UPS and Fedex, and I really cant say which was better. All this buzz about how big ground is becoming is a lie. Fedex ground has been and always will be the red headed stepchild of the small parcel industry. The company cares little about customer service, and their employees are treated as disposable commodities. Chump is right, both are out for profit, but honestly, when it comes to the end, UPS will come out on top. As for me, I am still in college and could care less about having a career with Fedex. With the way they treat their hourlies (handlers) I couldnt in good conscience stay in my position. I am not bitter however, as I have obtained a higher paying (teamster) job, with which I can actually live off of.
Thats what i've always thought, UPS have been the biggest for years and years and now Fed Ex is getting as big so their earnings will reflect that where as you get to a point where UPS has been for a long time where you just go along with average increases in revenue as the big jumps in profits have already got you to that position
you can apply that same argument to the ups store owners.
And what about UPS quarter report? Did you even reach double digits? Bad Management, Supply Chain prob and now news your freight div can't merge smoothly with other divisions. Also you guys just announced layoffs...
Like Jim Cramer said today...UPS..big company...slow growth....FEDEX....smaller company...growth and profits.....Sell UPS..Buy FEDEX.....I could'nt agree more!
BROWN OBSERVER, You hit it on the head! I also read in there last earnings report that there new Freight division also lost customers and money which hurt there earnings
UPS is hurting, FEDEX owns the market share in the Domestic and Int'l express markets. FEDEX also owns the market share in regional and national LTL freight. The last thing to go after is "UPS's bread and butter "GROUND". Customers are already seeing that in many U.S markets Fedex can shave off at least 1 day in ground shipping compared to there 100 year old big brother.
Jim Cramer what a media prostitute. Who cares about this tired arguement. All I know my package car is always full.
If package volume is hemorrhaging as many are saying, my same arguement applies...Why when i'm at a stop, I'm consitantly delivering 4 to 5 times as many as f ground and f express does. Why in the a.m. is my package care crammed full after 2 stops, when f ground's truck has an echo after his 2nd stop.
Trying to convince one another which company is better is like telling an atheist there is a God.
Rush, Same ol' song and dance. The same fedex guy is on here posting over and over again. . Monte. Damn, everybody else sees fedex trucks empty in the morning and seeing ups drivers "trying" to open the bulkhead door while the load on the bricked out car has shifted. Or opening up the back door and having the load fall out the back because the truck is so damn full. Most routes dont have the luxury of being able to walk through a truck with half full shelfs and every pkgs lined up perfectly. Our shelfs are cramed full of **** and its falling out of the truck. Im glad that fedex can have nice lined up loads and have small light letters. And two hour lunches. I wish I could have those kinds of loads also. Welcome to our reality at ups. So dont tell me about percentages because when your dealing with the volume amounts of both companies its not even close. **** man, we cant even get everything in the truck...what the hell does that tell you. And were dealing with route density that is much tighter than fedex....especially fedex ground. I have a country route and my truck is still bulked out most of the week.
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