From the clip below FedEx describe their situation: "the severity and expected duration of the recession require that we take additional actions."
Meanwhile, traders take up the 'Buy' help as though they know more than FedEx:
Standard & Poor's analyst Jim Corridore still thinks FedEx is in a good position to take advantage of an economic recovery, despite worse-than-expected demand and pricing in the third-quarter. He reiterated his "Buy" rating on FedEx, noting the stock has already been battered by negative economic news.
NVDL: What economic recovery? Unbelievable.
Economists and analysts consider FedEx and larger rival UPS to be bellwethers of the global economy, since they deal with such basic indicators of company health as orders and product shipments. Both companies have been courting former customers of DHL, which pulled out of ground deliveries in the U.S. earlier this year.
FedEx Corp. said Thursday it will cut more jobs and trim wages again, after reporting its fiscal third-quarter profit tumbled 75 percent on sliding revenue.
"Our financial performance was sharply lower during the quarter due to the global recession," Chairman, President and Chief Executive Frederick W. Smith said. "While we are gaining market share in all of our transportation segments, the downturn in our industry and the severity and expected duration of the recession require that we take additional actions."
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