fedex ground

80 plus overtime and most express drivers make less per hour also as your ground is now moving more packages than express you could be fighting your ground people for jobs. i think you love your job and that is great but you have to admit fedex ground is only good if you can buy alot of routes and get someone else to run them. i donot know much about express but fedex freight pay is good and drivers move up pretty quick. but they are still young and it will take time for them to get the bens you get. so im only disagreeing on ground.
 

tieguy

Banned
wkmac said:
I believe had I wanted to make that my intent I would have stated:

Whether "YOU" like it or not...........

Instead I used the following:

Whether "WE" like it or not..........

The bottomline is FedEx, as a stock, where it really counts is outperforming UPS by a longshot. You and I can twist it and try to sell it however we want but the stockprice proves right now which one is a better buy.

As for Monte, it's a good thing you've got him on ignore. You don't want to see what's he's been saying. I know I won't take that kind of crap from anyone if they said that to me. Man did he cross the line!

LOL. I imagine the guys is scared to death of the declining volume trends.
 

montecarlo12

Well-Known Member
ups79 said:
monte: if I were you, I would worry that when I retired Fedex will be belly-up and I will have no pension what so ever. How funded is your plan? With all of fedex's dept. Fred someday will be using your plan for his personal atm.

UPS79.
again, you could be right...Fedex could be gone tomorrow. Im just taking it day to day. About the Fedex Debt.....You wouldnt happen to no what it is do you. Ive seen that brought up alot in the last 3 years but ive yet to see an actual figurr posted by anyone.
 

montecarlo12

Well-Known Member
Chriscraft,
There are seven companies under the Fedex Brand. (Express, Ground, Freight, Custom Critical, Home delivery, Trade Networks, and Kinko's. None share the same benefit packages or pensions/401k. Each company is independently run and targets a specific market. I like the way my 401k and pension are set up. Because I worked 12 hr days through most of my 20's I will do much better then a person who worked 40hrs there entire career in the same division. I like the fact that the Fedex Express pension is personalized to the individual and not a set amount. Gives the employee more contol of his or her retirement.
 

montecarlo12

Well-Known Member
UPS79,
thank you for posting the information. Could you post the link for us?
That number sure doesnt look like a huge number to me for a company who has annual revenues of 32 billion. If im not mistaken, Hasnt Fedex made CASH purchases in the past few years that more than triple that 2.7 billion??? I guess Fedex isnt a debt ridden company after all huh??
 

montecarlo12

Well-Known Member
ups79 said:
monte: if I were you, I would worry that when I retired Fedex will be belly-up and I will have no pension what so ever. How funded is your plan? With all of fedex's dept. Fred someday will be using your plan for his personal atm.

UPS79,
The pensions and benefits for each operating company are not the same. I only know how the Express division works. Our medical and dental also differ depending on which area of the country you are in. With us its 25 years and out...Maybe Chriscraft can ask his bud at Fedex freight how there pensions work and post it for us.

UPS79,
can I get a link to your information on Fedex debt. I think I have a more recent #

I looked up a few companies that Fedex has purchased over the last few years. There are (5) Im leaving out including Calibar Systems, because I cant Find what the actual purchase price for these companies.

DTW Group (in China) 1.24.06 $400. million PAID IN CASH
Parcel Direct 12.13.04 $120. million PAID IN CASH
Kinko's 2.12.04 $2.4 billion PAID IN CASH
American / Viking Freight 2.12.01 $1.2 billion PAID IN CASH/Common stock
Geo Logistics 8.6.99 $116. million PAID IN CASH

Calibar Systems was our largest purchase but I cant find a dollar amount.

Why do people keep saying that Fedex Corp is deep in debt????? The most recent debt report can be found on Fedex.com under 2005 Earnings report. It shows both short and long term debt owed by Fedex.
 

ups79

Well-Known Member
so why did you need me to give you a number, if you knew where to find it? Let me ask you, how much cash do they have currently? doesn't purchased with cash just me not stock? could it still be that they used the cash they borrowed to make the purchases?
 

montecarlo12

Well-Known Member
UPS79
Its common knowledge where to get that information for any company. Ive just seen the comment that Fedex is so deep in debt so many times that I wanted to see where you heard this. 30+ years ago when the company first started, there is no doubt that Fedex was in debt over there heads for years. Not very many people can start up a business or purchase a home, using just there own cash. Im not giving you a hard time by asking for a link, I just want to be able to chat, with both of us on the same page with an actual number to start.Thats why Tieguy put on his running shoes after I called him out on a few lies. There is nothing wrong with having a strong opinion but when the facts are infront of him, he still lies. He still stands by his remark that Fedex had a GDP for 2005 and under performed the economy. Notice how he did not want to post a link. He decided to run because he was caught in another lie and that would be another factor to disprove his claims of Fedex having lost volume. If you read the articles most of the purchases were done in cash. As far as outstanding Debt goes, You will see most of it is tied up in long term leases for stations. I dont know what Fedex has tucked away in the bank. I do know my name isnt on the account :mad:
 

ups79

Well-Known Member
it only has tucked away about 780 million. also what type of credit rating does fedex have? i can't find it listed.
 

montecarlo12

Well-Known Member
UPS79.
where did you come up with 780 million??

I went to Investor Faqs on Fedex.com.
Im not sure when the last time the site was updated but this is what I found.

Fedex Corp. debt rating is BBB by Standard and Poors, and BAA2 by Moody's.

Fedex Corp. commercial paper is rated A2 by Standard and Poors and P2 by Moodys.

March 22, Fedex will announce its 3rd Quarter earnings. Maybe we can get the most updated rating then.
 

tieguy

Banned
ups79 said:
so why did you need me to give you a number, if you knew where to find it? Let me ask you, how much cash do they have currently? doesn't purchased with cash just me not stock? could it still be that they used the cash they borrowed to make the purchases?

I believed the Kinkos purchase involved quite a bit of stock. Fdx sitting with 2.8 billion in debt and putting up alll those buildings has to be able to grow the business to pay the bills. I don't believe thats happening at a fast enough rate. Fdx can only gouge their customers with excess fuel and residential surcharges for so long before they get wise to the game. Should be interesting.
 

Uncle Rico

Well-Known Member
Having had the pleasurable experience of working for both organizations:sad: my opinions and observations go like this: Fredex's business plan of "operate independently, compete collectively" is yet another smoke and mirrors concept developed by Fred and his wonderful PR dept. Nothing is integrated-employees,trackers,operations,sales,rules,employee relations. His plan may work in the short term but the ICs of ground are pissed. Promised 6 figures and netting 40k! Independent yet terminal managers are telling them how to do things, giving them "splits" that are unprofitable. I'd be mad too. Express isn't losing volume to UPS or DHL, it's losing to its cousin ground.

Integrated services? 9 years at X and saw a sales person 5 times. They make(as part of your review and raise)couriers go get the leads and no one follows up. As an x courier do you know how stupid it is to be 2 steps ahead or behind the ground driver. How stupid is it to say, No I can't take that pkg because it is ground's. Having up to 5,6,7 fedex couriers coming into your place of business per day. Yeah, it's putting your people in front of the customer but c'mon, it's express at 10;30, ground, express deliveing standatd or 2day, pick-up express, pick up ground if they get to it, misload/misroute express driver. UPS, one driver doing it all.

Fred's plan is a house of cards, smoke and mirrors formula. He's making tone of money and his stock is overvalued because of the independent contractors slaving away doing 2/3 of the deliveries. Express is his core business and he's stripping it of volume to give it to his ICs. They are unionizing and forcing to be classified as employees. Here and there, but eventually all of them will benefit from the brave ICs who stepped up and told Fred "we are mad as hell and we are not going to take it anymore.

Wall street will catch on. Fedex will be around for a long time as will UPS. For goodness sakes, people shop like crazy via the internet,somebody has to bring it to their lazy asses front door. God forbid they go to a store and buy whatever. Read on about the morale issues the ordinary fedex employee has towards Uncle Freddy on FedExaminer.com. At every organization there are those who would die for their company, monte. It's pride in thier organization but from my perspective, UPS, in all of its conservativeness, is the more respected company. I haven't worked there in 10 years and I still bleed brown. Fedex gave me little to be proud of. You just have to learn to read between their purple haze of bs. :)
 

moreluck

golden ticket member
<IMG class=pixelTracking height=1 width=1 border=0>FDX0.00, 0.00, 0.0%) reported fiscal third-quarter net income Wednesday of $428 million, or $1.38 a share, compared with $317 million, or $1.03 a share in the same period last year. Revenue in the three months ended Feb. 28 rose 9% to $8 billion from $7.34 billion. Analysts polled by Thomson First Call forecast earnings, on average, of $1.30 a share and $8.03 billion in revenue in the quarter. FedEx, the package delivery giant, forecast fourth-quarter earnings of $1.65 to $1.80 a share. The company lifted its fiscal 2006 earnings outlook to $5.66 to $5.81 a share, including a 15 cents a share lease accounting charge, above a previous view of $5.45 to $5.70 a share.
 

tieguy

Banned
Seems to have been some concern about revenue growth not meeting the plan and domestic air express being down 3 percent.

Fdx explained it by saying they move that 3 percent "less profitable air" into the ground segment. Interesting strategy.

Improves air margin. Improves ground margin. Inflates ground growth numbers.

Some had defined Fdx's term of revenue management as meaning they would cherry pick high profit packages. Logic would tell you that the cherry picking stage is done. It now appears Fdx will help manage revenues by steeing volume to different segments they think can most profitably handle it.

So while domestic express volume was down 3 percent overall express margins improved to 8.4 percent.

Question on the conference call which was never answered. How much did the movement of express volume to the ground segment increase the 11 percent reported gain in ground volume. Fdx rep sidestepped the question by saying they had not done the analysis. There is absolutely no doubt in my mind they did the analysis and they know the answer to that question.
 

Uncle Rico

Well-Known Member
I'll tell you the answer. Express, the core business Fred started, is hemmoriging volume to Ground and Home Delivery. Peak season, Valentine's Day (flowers and gifts) were nothing they couldn't handle. 3,4 years ago it was chaos with managers calling on courier companies to do alot of deliveries.
Stock is overvalued because again, smoke and mirrors. "Had not done analysis" sounds like a shell game to me. Can anyone smell Enron? Wall street should be smarter than this, but I guess Fedex has to play their own numbers game to look good exactly how their couriers have to smudge enough so they look good enough to keep their routes.
Labor costs to del a package have to be ridiculously lower when you pay an independent contractor to do your deliveries for you. Man, I can't wait for the spiralling drop that is going to happen when ALL of Fred's ICs become "employees" in the truest sense...Paying for their vehicles, fuel, health benefits.
What should be watched is the execs cashing in stock in chunks to beat the beating FDX stock is going to take. I'll bet someone has done the analysis on that.
 

moreluck

golden ticket member
FedEx Unit Reaches Settlement In Calif Wage Suit
Dow Jones

WASHINGTON -(Dow Jones)- FedEx Corp. (FDX) said its Federal Express Corp.
unit reached a settlement in February with hourly employees in California
related to a class-action wage lawsuit.

According to a quarterly report filed Friday with the Securities and
Exchange Commission, the plaintiffs alleged that hourly workers were routinely
required to work "off the clock" and weren't paid for the additional work.

The lawsuit represents a class of workers from Oct. 14, 1998, to the
present, the SEC filing said.

FedEx said the proposed settlement will be presented to the court for
approval.

The Memphis-based provider of transportation, electronic-commerce and
business services said its Federal Express unit continues to deny liability but
entered into the settlement to avoid the cost and uncertainty of further
litigation.

FedEx said the amount of the proposed settlement was accrued at Feb. 26 and
isn't material to the company. The company didn't disclose the settlement
amount in the filing or the court in which the lawsuit was filed.

The lawsuit was granted class-action certification by the court in December
2004.
 
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