FedEx Delivers Good News
FedEx, a bellwether of our economy, delivered positive news to investors about the economy.
In an exclusive interview with Maria Bartiromo on Closing Bell, CEO Fred Smith said he's seeing signs of improvement in the global economy as international shipments pick up.
While profit will remain weak at least through the end of the year, Smith told Bartiromo the company may start beefing up schedules for flight crew and hourly personnel as package volume improves.
FedEx has vigilantly managed costs for more than a year now. Because of those efforts, Smith says the company is expected to save about $3 billion by the end of fiscal 2010 from cost cuts made since June of 2008.
For investors looking for earnings data, revenue slid 20% to $8.01 billion last quarter. Net income for the three months ending Aug. 31 was $181 million, or 58 cents a share. The 4% decline in overseas priority deliveries was the smallest slide in four quarters - reflecting a return of global demand.
Bottom line, the economic bellwether sees signs of stability in the U.S. and overseas - a very welcome change from where we were just a year ago.
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