Friday, March 20, 2009

FedEx starts Firing

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.
clipped from finance.yahoo.com
In this Dec. 15, 2008 file photo, FedEx workers sort packages passing along a conveyor belt before loading them onto delivery trucks at the FedEx Express Station in New York.

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.

Chart for FEDEX CORP

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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