FedEx Sees Sign of a TurnaroundCNBC
Package delivery giant and U.S. economic bellwether FedEx is seeing signs for a potential turnaround in the second half as production seemed to be picking up again, German magazine WirtschaftsWoche reported.
Michael Ducker, in charge of FedEx's international business, told WirtschaftsWoche in an interview to be published on Monday that the downturn was easing and its ternationally transported volumes had not fallen further compared with the previous quarter.
"Production seems to be picking up again worldwide," he was quoted as saying.
He added that FedEx was aiming to save about $1 billion in its current financial year by, for example, taking out high fuel consuming planes, and by cutting working hours and maintenance costs.
FedEx was not planning on cancelling any of its plane orders, Ducker told the magazine.
Like its main rival, United Parcel Services , Memphis, Tennessee-based FedEx is considered a bellwether of U.S. economic activity.
Monday, July 6, 2009
FedEx: Sign of Growing Hope For the Economy
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I have definitely seen a decline of the Fed-Ex and UPS trucks running around our town. Still way too many people not buying yet.
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FedEx was not planning on cancelling any of its plane orders, Ducker told the magazine.
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Does anyone think we could allow fedex to compete with the post office? Whats that law about anyways, I get the feeling Fedex would do a better job for a better price.
ReplyDeleteThe economy has pinched everyone! Big business, small business a like. I can't wait until it turns around completely
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ReplyDeleteIt would be interesting to see what would happen if Fedex could go toe to toe with the post office. Why not let UPS in on the action too? It only makes sense to us capitalists.
ReplyDeleteIt seems more efficient to have one person delivering in my neighborhood each day instead of three vehicles and three people. Would you suggest having FedEx and UPS bid for delivery in a neighborhood and have shared distribution channels to local or regional offices?
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I think what he told was right. :)
ReplyDeletemore delay or stop you cash flow then less profit we receive.so time holding policy is not good for growth.
ReplyDeleteI truly hope the economic downturn is behind us. If this is in indication, I understand that FEDEX has stated they plan to hire thousands of new drivers in the next year. Is this true?
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I hope Fedex realizes that by laying off workers those people will be less likely to purchase or use their services, and by trying to save billions this way they may actually be hurting their business.
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I think the turnaround will be slow, but we will get there eventually. Always great to hear of positive signs - thanks for posting!
ReplyDeleteI had no idea that FedEx was even struggling. They are my first choice for shipping stuff domestically. Ah well - thanks for the post.
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I guess financially, my neighborhood is doing very well. FedEx is here every day! Yes, the economy is bad but my neighbors are all sensible. Many of them retired early in the past two years. Many of them paid of their houses, put their kids through college and are now enjoying some time off. It pays to be fiscally responsible...
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Companies will pull through just as they have done in the past. FedEx have done incredibly well considering. Thanks for the post.
ReplyDeleteThis is interesting, I think that FedEx was doing quite good. Thanks for sharing.
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ReplyDeleteAgreed.
ReplyDeleteMore and more companies will go down while there is no concrete solution to the US crisis that is dragging down the economy of the whole wold.
ReplyDeleteThis is interesting information that you shared. I agree the thoughts of Mr. Michael Ducker that they not cancelling of its plane orders. And they prove today that they still in the full operation.
ReplyDeleteIt was very well said by Mr. Ducker. I never thought I would agree with this opinion. I have to research more on this as it seems very interesting.
ReplyDeleteI’ve known this company FedEx for a long time as one of the successful carrier. I think there is no sign of quitting.
ReplyDeleteGood point of view from Mr. Ducker. Having said that, I would never agree with his opinion. FedEx has been successful because they have shown good adaptibility with changing business scenarios. This will continue to be the hallmark in the future as well.
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