FedEx says economy is worsening, cuts outlook

LA times ^ | 9/19/12 | Associated Press

[listenhillary]

FedEx Corp. says the global economy is worsening and it's cutting its forecast for the fiscal year ending in May.

The world's second largest package delivery company also said Tuesday that net income for the current quarter ending in November should fall well below last year's quarter. The stock lost about 2 percent in premarket trading.

The Memphis, Tenn. company now expects to earn between $6.20 and $6.60 per share for the full fiscal year, compared with a previous forecast of $6.90 to $7.40 per share.

FedEx is seeing a drop in demand for more expensive priority services. As the global economy has slowed, FedEx customers have switched to cheaper deferred delivery services. FedEx hasn't been able to cut costs fast enough to match the decline in demand.

[DoughtyOne]

Yes, but under Bush FedEx almost went belly up. /s

I can just hear it now, what the Obamanistas are about to say in response to this.

[Ingtar]

Every time FedEx changes their outlook over the last few years, the GAO seems to adjust theirs as well.

[listenhillary]

“I can just hear it now, what the Obamanistas are about to say in response to this.”

How about...
People are taking note of our message! They are shipping packages Fed-ex ground instead of overnight thus reducing their carbon footprint. Isn’t it great?

[Gaffer]

Since the post office makes a profit on most of the junk and reduced-price bulk mailings and that they are ALSO running more negative on the budget side, I’d expect that Fedex’s assertions are true.....

Come to think of it, most junk mailings I’ve received in the past are significantly diminished now.

[cardinal4]

I read somewhere, probably here, that FedEx is a bellwether for economic forecasting..

[DonaldC]

I wonder what the status of the ghost fleet is.

[DoughtyOne]

Gack! ;^)

[Ingtar]

http://investors.fedex.com/phoenix.zhtml?c=73289&p=irol-newsarticle&ID=1735313

This is the link to the actual report, without the LA Times “interpretation” included.

[TexasFreeper2009]

My business is very sensitive to the economy, and judging by recent receipts... we are falling into a double dip recession that probably wont be reported until after the election

[Ingtar]

They are shipping packages Fed-ex ground instead of overnight...

This part of the statement is quite true.

[GOPJ]

Disability’s going to swamp the economy - or what’s left of it after ‘QE 200’ - people are afraid to buy anything until they know Obama’s out...

[Dr. Ursus]

I thought it was underwear?

[TexasGunLover]

I read somewhere, probably here, that FedEx is a bellwether for economic forecasting..

Like UPS, but unlike UPS, they're a non-union business, so definitely one to support.

[folkquest]

Oh my... This is quite UNEXPECTED! /sarc

[Huskrrrr]

What, no summer of recovery? Again?

[Obadiah]

I’ve been convinced for some time now that the entire Obama administration has been doing everything humanly possible to keep the economy on life support until after the election. I think that the bottom drops out in the first quarter of next year.

[traumer]

The private sector is doing just FINE

[American Constitutionalist]

Canary in a coalmine.

When you see truckers saying that the economy is bad, and now companies like FEDX saying it's bad ? then it's bad.
The shipping, freight, and transportation sectors of our economy are the canarys in the coalmine of how our economy is performing.

[American Constitutionalist]

" I can just hear it now, what the Obamanistas are about to say in response to this. "

Be patient ? give him 4 more years ?