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The Latest FedEx Headlines
FedEx hikes package rates, details cost cutting as demand weakens globally
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<blockquote data-quote="Next Day Error" data-source="post: 5409355" data-attributes="member: 97871"><p><a href="https://www.cnbc.com/2022/09/22/fedex-fdx-reports-q1-earnings.html" target="_blank"><strong>FedEx hikes package rates, details cost cutting as demand weakens globally</strong></a></p><p></p><p>The shipping giant struggled with light volumes in the quarter, citing headwinds in its Europe and Asia markets. The poor results shocked the market, as <a href="https://www.cnbc.com/2022/09/21/fedexs-warning-reflects-both-global-economy-and-internal-shortcomings.html?&qsearchterm=fdx" target="_blank">investors tried to distinguish market woes from FedEx’s own internal shortcomings</a>.</p><p></p><p>In issuing its full first quarter results Thursday, the company said that its Express, Ground and Home Delivery rates will increase by an average of 6.9%. Its FedEx Freight rates will increase by an average of 6.9%-7.9%, the company said.</p><p></p><p>It also said it believes it will save between $1.5 billion and $1.7 billion by parking planes and reducing flights. The closure of certain locations, the suspension of some Sunday operations, and other expense actions will save FedEx Ground between $350 million and $500 million, according to the company.</p><p></p><p>FedEx said it will save an additional $350 million to $500 million by reducing vendor use, deferring projects and closing office locations.</p><p></p><p>“We’re moving with speed and agility to navigate a difficult operating environment, pulling cost, commercial, and capacity levers to adjust to the impacts of reduced demand,” said Subramaniam.</p><p></p><p>For its fiscal 2023, the company expects total cost savings of $2.2 billion to $2.27 billion.</p><p></p><p>Despite its bleak warning last week, FedEx stood by its 2025 projections set out in June. The company is forecasting annual revenue growth of between 4% and 6% and earnings per share growth of between 14% and 19%.</p></blockquote><p></p>
[QUOTE="Next Day Error, post: 5409355, member: 97871"] [URL='https://www.cnbc.com/2022/09/22/fedex-fdx-reports-q1-earnings.html'][B]FedEx hikes package rates, details cost cutting as demand weakens globally[/B][/URL] The shipping giant struggled with light volumes in the quarter, citing headwinds in its Europe and Asia markets. The poor results shocked the market, as [URL='https://www.cnbc.com/2022/09/21/fedexs-warning-reflects-both-global-economy-and-internal-shortcomings.html?&qsearchterm=fdx']investors tried to distinguish market woes from FedEx’s own internal shortcomings[/URL]. In issuing its full first quarter results Thursday, the company said that its Express, Ground and Home Delivery rates will increase by an average of 6.9%. Its FedEx Freight rates will increase by an average of 6.9%-7.9%, the company said. It also said it believes it will save between $1.5 billion and $1.7 billion by parking planes and reducing flights. The closure of certain locations, the suspension of some Sunday operations, and other expense actions will save FedEx Ground between $350 million and $500 million, according to the company. FedEx said it will save an additional $350 million to $500 million by reducing vendor use, deferring projects and closing office locations. “We’re moving with speed and agility to navigate a difficult operating environment, pulling cost, commercial, and capacity levers to adjust to the impacts of reduced demand,” said Subramaniam. For its fiscal 2023, the company expects total cost savings of $2.2 billion to $2.27 billion. Despite its bleak warning last week, FedEx stood by its 2025 projections set out in June. The company is forecasting annual revenue growth of between 4% and 6% and earnings per share growth of between 14% and 19%. [/QUOTE]
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