Pension costs at FedEx may skyrocket

Discussion in 'The Archives' started by bigshot, Jan 14, 2003.

  1. bigshot

    bigshot Guest

    Pension costs at FedEx may skyrocket


    FedEx Corp. says it's "reasonably possible" that its pension costs will increase by $80 million-$120 million in fiscal 2004.

    With annual revenue of $22 billion, Memphis-based FedEx is a global provider of transportation, e-commerce and supply-chain management services.

    The company estimates its pension costs for fiscal 2003 will be $80 million higher than the previous year because of decreased returns on pension assets and a lower discount rate used to measure its pension obligations, the filing says.

    FedEx previously said it has contributed $241 million to its pension plans so far in fiscal 2003, ending May 31, and may make added contributions, although it's not required to do so under pension laws.