FedEx Lowers Expectations, Increases Shipping Rates

By Hercules Kataveli, B2P
Published on Tuesday December 9, 2008 at 2:52 pm ET
Updated 08-23-10, 1:19 pm ET

fedexFedEx has just announced it will cut costs and increase shipping rates for 2009 (3% average net increase, 3.8% net increase for FedEx Ground) because of the economic crisis. The company has lowered its fiscal 08 expected profits to be between $3.50-$4.75 earnings per share, down from $4.75-$5.25 a share. The new forecast is significantly lower than Wall Street forecasts, who expected the company to earn about $5.16 a share.

In other news, FedEx competitor, Con-way, has too lowered its 2008 forecast to earnings of $2.20-$2.35 a share, down from $2.60-$2.80 per share earlier in the year. Con-Way also recently cut its payroll costs by up to $40 million for 2008 by reducing its workforce by 8%, or 1,450 employees, across North America.

No additional job cuts were announced, from either FedEx or Con-Way.

tag TAGS: ,
               
Short URL: https://business2press.com?p=460
Recommended:
b2p Ensure that you follow us on Twitter and Like us on Facebook
Hercules holds a B.Comm Finance from Ryerson University in Toronto, Canada. He is a Chartered Financial Analyst (CFA) level 3 candidate. He was previously a contributor at FiLife, a finance website owned by Dow Jones and IAC. Write to [email protected]
checkmark
We are perfectly committed to the highest ethical and professional codes of conduct and standards in the industry on a firm wide basis. Learn more about us, our contributors, and our governance
b2p
We encourage you to comment. Comments are moderated. Comments that are abusive, off-topic, have marginal substance, or include promotional content will be removed. We cannot facilitate requests to edit or remove comments, or explain moderation decisions

Business 2.0 Press publishes exclusive business tech news and analysis covering start-ups to large-caps from Bay & Wall streets since 2008 from a group of highly knowledgeable industry professionals that abide by the toughest industry codes of conduct and professional standards lightMore

lightAdd value by subscribing (RSS)

HEADLINES

FEATURED

logo
StockFractions.com has the most stock ratios for public companies. Get the most comprehensive micro insight on public firms available on the web, all for free.
Stock Fractionsgo

title
Colon cancer is one of the leading causes of death. Irrespective of family history, everyone is exposed to the risk. About 90% of colon cancer cases begin from non-cancerous tumors, polyps, which could form in the large bowel. Screening with a colonoscopy will painlessly remove any polyps hence almost entirely reducing your risk of developing the horrible disease. The good news is that about 90% of colon cancer cases are preventable through a simple (yes, simple) colonoscopy.
Learn moreatom
Public service message from Business 2.0 Press

Explore these sites