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FedEx has cut its full-year earnings forecast just three months into its financial year. It blamed fewer packages in the LTL business owing to weak industrial demand, and it had excess capacity in its freight division as volumes fell. Meanwhile, FedEx Ground costs are of “concern”. But Fred Smith, president, said the company would have met expectations if it had not increased its self-insurance reserves. “All the rest of the stuff is just noise and various issues inside the operating company, so it’s important that you focus on that one issue,” he noted, sounding a little like a magician using misdirection to divert attention. The company said it would be hiring 55,000 additional staff for the holiday season, but would turn packages away once it had reached capacity. It also said it had begun its integration plan for TNT.

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