The week that was: 17 September 2010
Strong results for FedEx, Potter stresses sustainability is achievable, and Yodel hits the road… A big hello to our wonderful readers! We are here to provide you with a round-up of the biggest news stories that hit the headlines over the past seven days – it’s ‘the week that was’.
FedEx supremo Fred Smith will be enjoying his weekend after the company released its Q1 results. Profits at the company almost doubled, compared to the same period for 2009. The express giant said the upturn in fortunes was down to stronger demand prompted by the improving global economic climate. According to the latest results, operating income stood at $628m for Q1, up from $315m year-on-year – a rise of 99%. “Strong demand for our services resulted in higher volumes and better revenue per shipment at FedEx Express and FedEx Ground,” said Smith, the chairman, president and chief executive officer. “This increased demand comes from improved global economic conditions and the benefit provided by the strength and flexibility of our unparalleled global networks, which we’ve improved during the downturn to deliver even more reliability and value to our customers.” For the quarter, which ended 31 August, FedEx recorded revenue at $9.46bn, up 18% from $8.01bn the previous year. Furthermore, operating margin stood at 6.6%, up from 3.9% the previous year; net income rose to $380m, up 110% from $181m.
Staying in the US, and postmaster general John E. Potter stressed that long-term sustainability for USPS will be achieved through fundamental change. Potter made the statement in his annual state of the business address to the mailing industry on Wednesday. “The Postal Service must have the ability to manage its business, and to adapt quickly to the needs of our customers and the marketplace,” said Potter. “And our business model must change to reflect the reality of a volatile economy and a communications marketplace that has been undergoing a transformation as profound as anything that has ever come before.” Despite cutting spending by $3bn in 2010, the Postal Service continues to seek meaningful change for greater control over business decisions, including delivery frequency, pricing and products, public policy and workforce flexibility.
Over to Europe now, and Yodel has begun the first phase of its brand roll-out programme in the UK. From October this year customers and the public will begin to see the Yodel brand out on the streets. The brand roll-out comes after a decision to change the company name from Home Delivery Network (HDNL) in May. Jonathan Smith, CEO of Yodel, said: “We are very excited to see the physical manifestation of our new brand now taking shape. The introduction of the new livery marks the start of a phased rollout across our networks with many more vans to follow next year.” The rebranding formed a part of a company transformation, which included the acquisition of DHL’s domestic parcel business in the UK, completed earlier this year.
And finally…
Exciting news from Triangle, who announced today that the 2011 World Mail & Express Americas Conference will be held in Mexico City on 6-8 February. Read about it here!
