FedEx Raises Package Rates, Outlines Cost Cuts – Investopedia
FedEx outlined plans to park planes, suspend some Sunday deliveries, and shut corporate offices after falling demand impacted its first-quarter profits and prompted the company to withdraw its forecast last week.
FedEx also said it plans to raise shipping rates by an average of 6.9% across most of its services starting in January to cope with the global slowdown. The average number of packages FedEx handled daily for the quarter fell 11% from a year ago. Fuel surcharges helped offset the lower package volume, however operating expenses weighed on profit margins.
The company reported that its earnings per share (EPS) fell 21% for the quarter. It blamed the rapidly deteriorating global economy. The company said it expects the steps it is taking will boost cost savings by between $2.2 billion and $2.7 billion in fiscal 2023.
FedEx (FDX) shares are down 3% in pre-market trading, and have lost 40% of their value so far this year.
News
Earnings Reports and News
Company News
Stocks & Bond News
Earnings Reports and News
News
When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site.
