Tag: FedEx

FedEx reports solid revenue and earnings growth

Posted by | Dec 20, 2006 | |

FedEx Corporation today reported earnings of USD1.64 per diluted share for the second quarter ended November 30, compared to USD1.53 per diluted share a year ago. The quarter’s results included costs associated with the new pilot labor contract at FedEx Express. The net effect of this agreement reduced second quarter earnings by approximately USD0.25 per diluted share. Excluding these costs, second quarter earnings were USD1.89 per diluted share, an increase of 24% from last year’s second quarter.

FedEx Corp. reported the following consolidated results for the second quarter. Revenue of USD8.93 billion, up 10% from USD8.09 billion the previous year.
Operating income of USD839 million, up 6% from USD790 million a year ago.
Operating margin of 9.4%, down from last year’s 9.8%.

Net income of USD511 million, up 8% from USD471 million the previous year
Total combined average daily package volume at FedEx Express and FedEx Ground grew 7% year over year for the quarter, led by ground and international express package growth.

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FedEx contract loss means Business Post shares struggle

Posted by | Dec 20, 2006 | |

Business Post shares suffered yesterday when US logistics giant FedEx confirmed it was scrapping a major contract with the company, which has a hub in Birmingham.

The move follows FedEx’s pounds 120 million acquisition of ANC Holdings, a major rival to Business Post in the UK.

Business Post’s shares retreated 32 1/4 ViTp to 429 3/4 p in early trading but later recovered some lost ground to close 17 1/4 p down at 444 1/2 p, a loss of 3.7 per cent. FedEx said it intended to terminate Business Post’s contract as “Global Service Participant” in the UK, a contract that accounts for about six per cent of the company’s turnover.

Given the operational gearing of the contract, the impact on earnings is likely to be slightly higher, City analysts believe.

Broker Altium has, however, maintained its earnings estimate for the time being.

But it has cut its long-term target price for the stock from 450p to 425p, while Teather & Greenwood downgraded shares from “buy” to “sell”.

Business Post said in a Stock Exchange statement that it expected the FedEx contract, which only came into effect in September this year, to end in September 2007.

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Where is Asia’s Express Market going?

Posted by | Dec 19, 2006 | |

There’s only one way to go and that is UP. In 2007 we will see more new players entering the market as Asia’s economies continue to grow. Courier industry is characterized by high entry barriers. It needs huge investment in infrastructure and technology and there is intense competition in the industry. The market for courier industry can be divided into individual, corporate and small and medium enterprises. On the basis of type of delivery, it can also be divided into overnight delivery and same day delivery services.

Courier companies are using information technology to enhance the quality of their customer service and obtain competitive edge. There are only a few global courier companies like Fed Ex, DHL, UPS and TNT and there is intense competition among them with each one trying to establish its superiority. In India, presently, DHL, Blue Dart and Elbee are the major players contributing to 70% of industry’s revenues. An interesting observation in the past three years , is that the big Four are now entering the domestic market, an area that they have been relatively weak in. This could also result to a backlash on their main core international businesss. Asia’s domestic courier market has always been the strength of the home-grown operators with intimate familiarity of the terrain.

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FedEx seeks improved software testing

Posted by | Dec 19, 2006 | |

Believing current software testing approaches are antiquated, FedEx is working with the University of Memphis to take testing to its next steps.

The package delivery company has commissioned the university to research a number of topics pertaining to the matter, through the FedEx Institute of Technology program at the school. The testing project, called the Systems Testing Excellence Program (STEP) could result in the largest testing organization in the country.

Specifically, FedEx seeks methodologies to make testing processes shorter while ensuring that applications are high-quality. Current testing practices are basically the same as they were in the 1980s, said Dave Miller, vice president of information technology at FedEx. Code is written and then turned over to unit testing; testers look for defects and send that detail back to the development team, Miller said. Determinations are made on whether an issue actually is a defect or requirements shortcoming.

“We sort of believe that testing as a discipline has probably not kept up pace,” with other areas of IT, Miller said.

FedEx’s focus is on testing of large, complex, integrated software systems, on both mainframe and distributed systems.

“We want to make sure we’re in the forefront of the testing space,” Miller said.

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FedEx acquires UK Express Company ANC

Posted by | Dec 19, 2006 | |

Strategic Purchase Offers Customers Broader, More Seamless Range of Services.

FedEx Corporation today announced it has acquired ANC Holdings Limited, a United Kingdom domestic express transportation company for GBP120 million. This transaction will allow FedEx Express, an operating unit of FedEx Corp., to directly serve the entire UK domestic market, providing a broader range of shipping options and enhanced service under the trusted FedEx brand.
ANC offers a comprehensive range of distribution and logistics services with an established pick-up and delivery network across the UK. Founded in 1981, ANC has annual revenues of more than GBP145 million and is known for its strong customer-service philosophy, its advanced, reliable delivery network and commitment to its employees. ANC currently operates with a network of approximately 4,500 people and a fleet of 2,200 vehicles from 80 locations.
“The addition of ANC significantly expands our service portfolio in the important UK market and underscores our continuing commitment to grow the FedEx international business,” said Michael L. Ducker, president, International, FedEx Express. “This strategic investment enhances FedEx in the global express industry and will deliver additional value to our customers, employees and shareowners.”

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