Tag: FedEx

First Potomac Realty Trust signs 75,000 square foot lease with FedEx ground

Posted by | Jul 31, 2008 | |

First Potomac Realty Trust announced that it has signed a five-year lease with FedEx Ground, a subsidiary of FedEx Corporation for approximately 75,000 square feet at 1920 Campostella Road in First Potomac’s Diamond Hill Distribution Center in Chesapeake, Va. The facility will house the company’s residential delivery service, FedEx Home Delivery.
Diamond Hill is a four-building industrial park, totaling 712,500 square feet on 37.43 acres of land, located adjacent to Route 64.
Scheduled renovations to the space are underway with FedEx Home Delivery operations expected to occupy the space in the fourth quarter of 2008.
FedEx Ground will relocate its local FedEx Home Delivery operations from a 32,000 square foot facility in Norfolk to the new Diamond Hill location. The move is part of FedEx Ground’s nationwide network expansion plan which calls for the addition of seven new hubs, the expansion of 21 existing hubs and the expansion or relocation of more than 230 local facilities by 2013. The expansion will boost the daily package volume capacity of the FedEx Ground network, which includes FedEx Home Delivery, from the current 3.8 million to 5.6 million packages by the end of its 2013 fiscal year.
FedEx Home Delivery, a service of FedEx Ground, specializes in convenient residential ground delivery service. With a network of 500 distribution hubs and local pickup-and-delivery terminals, FedEx Ground has a workforce of more than 70,000 employees and independent contractors and 20,000 motorized vehicles delivering over 3.8 million packages daily throughout the United States, Canada and Puerto Rico. The company reported annual revenue of USD 6.7 billion in fiscal year 2008.

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Chinese courier companies struggle to deliver

Posted by | Jul 30, 2008 | |

With fuel costs continually on the rise, China’s private delivery companies are among the hardest-hit sectors reporting declining profit margins and witnessing increasing pressure from major international couriers as they increase efforts to make inroads into China’s domestic markets.

Pushed by the dismal outlook in the delivery industry – costs have been driven up by 16 percent since fuel prices were raised in late June – private couriers in China are struggling to swallow the losses before any price hike becomes possible.

FedEx Corp has readjusted its delivery rate scheme in China since June. The charge for overnight express delivery has been cut from 34 to 18 yuan per kg from Shanghai to Beijing, which is much lower than the 30 yuan offered by local players such as SF Express.

The price cut, which is unusual given foreign courier’s higher operational costs compared with domestic competitors, is indicative of FedEx’s determination to compete in China’s express delivery market, said An Jianghong, an analyst from Anbound Group, a consulting firm headquartered in Beijing.

Shanghai-based China Business News also reported last June that FedEx chief financial officer Alan B. Graf had said that FedEx’s launch of its mail express service in China would have a “negative impact” on the company’s 2008 fiscal revenue.

In another bid to try to tap into China’s delivery business, FedEx is to open its Asia-Pacific hub in Guangzhou in December this year. The company said in a public announcement earlier that the relocation of the hub from the Philippines to China is based on the estimates on the growing demands for air express in the region.

Other rivals are also keeping up. Following last year’s acquisition of Tiandi Hoau, a Heilongjiang-based private express company, TNT is now set to build an extensive road transportation network in China with the launch of its new Asia road network, which is a new service route that connects China and Southeast nations via road transportation.

This network is expected to be extended into China’s hinterland as the company continues its investment in Tiandi Hoau to upgrade its operational infrastructure and delivery capabilities, analysts say, which will help the foreign courier strengthen its networks within China and expand into second and third-tier cities within the country.

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TNT shares fall as Q2 disappoints on Express volumes

Posted by | Jul 28, 2008 | |

Shares in TNT NV fell on Monday as the Dutch postal group said it expects full-year 2008 organic growth and operating margins to come in at the low end of its guided range as it reported worse-than-expected second quarter results.

Net profit fell to 205 million euros from 244 million euros, missing estimates of 224 million to 232 million, while EBIT was 324 million euros, down from 330 million last year and below estimates of 339 million to 352 million.

‘The sharp rise in fuel prices during the quarter and the general economic outlook have impacted both our customers and us,’ TNT chief executive officer Peter Bakker said in a statement.

TNT said the full-year 2008 is expected to develop within its outlook range, albeit at the low end.

It had earlier guided for Mail to show a low single-digit organic sales growth, with an operating margin around 16.5 percent.

At the Express division, TNT previously said it expects high single-digit organic sales growth in International & Domestic, with a low double-digit operating margin.

Shares fell almost 11 percent in morning trade before recovering slightly.

Divisionally, the Express division reported EBIT of 153 million euros up 1.3 percent from 151 million last year.

TNT said it saw a sudden slowdown in air volumes in June, but CEO Bakker said in a press conference that the decline was less strong in the first couple of weeks of July.

At the Mail division, EBIT fell to 173 million euros from 181 million, due mainly to volume declines in the Netherlands, where TNT expects volumes to decline by 3 percent to 4 percent per year until at least 2012.

Bakker also downplayed that TNT might make acquisitions of its own, telling journalists that the company’s strategy can be deployed on a standalone basis led by organic growth.

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TNT 2nd quarter results

Posted by | Jul 28, 2008 | |

TNT NV slumped as much as 11 percent after second-quarter profit fell short of analyst estimates and it said 2008 earnings will be at the low end of a forecast range.

The shares declined as much as 2.61 euros to 21.37 euros in Amsterdam after TNT said today net income dropped to 205 million euros (USD 322 million), or 55.9 cents a share, from 244 million euros, or 63 cents, a year earlier. Profit missed the 224 million-euro median estimate of seven analysts surveyed by Bloomberg. Sales rose 4.5 percent to 2.81 billion euros.

TNT experienced slowing growth in deliveries of air express packages as customers moved to cheaper road-based options, amid soaring fuel prices, echoing trends at competitors such as United Parcel Service Inc. The strength of the euro against other currencies hurt profit by 7 million euros. TNT said 2008 earnings will be at the “low end” of its outlook as Europe’s economy soften.

The Dutch company’s stock rose 30 percent in the previous two weeks on media reports that FedEx Corp., the second-largest U.S. package-shipping company, might buy the company. FedEx was in preliminary talks to buy TNT, the Financial Times said July 12. The two companies had “low-level” talks about a takeover recently, though the discussions didn’t lead the U.S. company to make an offer, the Wall Street Journal reported last week. TNT and FedEx declined to comment on the reports.

TNT shares were down 2.21 euros, or 9.2 percent, to 21.77 euros at 12:36 p.m.

Chief Executive Officer Peter Bakker declined during a news conference today to comment on the reports. He added that the Dutch company would review any “serious” takeover proposal.

TNT reiterated a forecast that the express division’s Dutch and international operations will generate “high single-digit” sales growth this year, excluding acquisitions, and that earnings before interest and taxes as a proportion of sales will be in the low double-digit percentage range. Mail-unit revenue will rise by a low single-digit percentage, also excluding takeovers, producing an operating margin of about 16.5 percent, TNT said, repeating earlier targets.

“The sharp rise in fuel prices during the quarter and the general economic outlook have impacted both our customers and us,” Bakker said in the statement.

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Earth Class Mail adds FedEx veteran to management team

Posted by | Jul 23, 2008 | |

After 24 years with FedEx, Chris Salvage has joined the team building the future of mail delivery as new VP of Operations

Earth Class Mail Corp announced Chris Salvage, a 24-year veteran of FedEx, as its new Vice President of Operations. The experience Salvage garnered by overseeing the daily delivery of 200,000 packages for more than a decade will help Earth Class Mail scale its online postal-mail service to meet larger volumes.

Salvage’s career in logistics, operations management, strategic planning, and business development with FedEx make him an ideal addition to Earth Class Mail. Managing a division of more than 1,000 employees has seasoned Chris for his role at the company that is building the future of postal-mail delivery.

We have seen increasing interest from large enterprises and European posts that have the potential to boost our mail volumes exponentially
“We have seen increasing interest from large enterprises and European posts that have the potential to boost our mail volumes exponentially,” said Ron Wiener, CEO and Postmaster General of Earth Class Mail. “With the team we now have in place, and this key addition of Chris Salvage, I’m confident we’re in a position to execute on the scale we envisioned.”

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