FedEx CEO Smith calls Amazon challenge reports 'fantastical'

© Khunaspix Dreamstime.

FedEx’s share price rose 6.3% on its updated earnings yesterday, after it beat analysts’ forecasts on the back of a $1.6bn cost reduction programme at its express division, and shrugged off the threat posed by Amazon’s expansion into supply chain activities. Chief executive Fred Smith maintained that the e-commerce platform remained a customer rather than competitor, and noted that no single customer of FedEx represents more than 3% of its total revenue. Third-quarter revenues for the group came in at $12.7bn, an increase of $1bn year-on-year, while net income was down 19% to $507m, largely due to legal costs in its ground transportation business.