Tag: FedEx

Board approves plan to replace narrow-body aircraft fleet with Boeing 757-200 aircraft

Posted by | Sep 25, 2006 | |

FedEx announced today a USD2.6 billion, multi-year program to acquire and modify nearly 90 Boeing 757-200 aircraft to replace FedEx Express’s narrow-body fleet of Boeing 727-200 aircraft. Subject to identification of suitable 757 aircraft to purchase and the successful negotiation of agreements to purchase such aircraft, FedEx Express expects to bring the new aircraft into service during the eight-year period between calendar year 2008 and 2016.

Compared to the 727 aircraft, the 757 has a 20 percent greater payload capacity, and has an approximately 25 percent lower operating cost per pound. Replacing the older 727 aircraft with the more fuel efficient and quieter 757 aircraft will have the effect of significantly reducing operating costs over time and providing better aircraft utilization efficiencies. In addition, the program will help to reduce greenhouse gas emissions and airport noise. The program is expected to have very positive financial benefits upon completion and although startup costs will be incurred, they will not materially affect earnings. The capital impact of the program on the current fiscal year was included in the company’s recent first quarter earnings release. The total FedEx capital spending forecast for fiscal 2007 remains at USD3.0 billion.

Read More

FedEx reports strong revenue and earnings growth. Operating margin continues to improve

Posted by | Sep 21, 2006 | |

FedEx Corporation reported earnings of USD1.53 per diluted share for the first quarter ended August 31, compared to USD1.10 per diluted share a year ago. Last year’s first quarter included a one-time, noncash charge of USD79 million to adjust the accounting for certain facility leases, primarily at FedEx Express. Excluding this charge, earnings in last year’s first quarter would have been USD1.25 per diluted share.

FedEx Corp. reported the following consolidated results for the first quarter:
Revenue of USD8.54 billion, up 11% from USD7.71 billion the previous year
Operating income of USD784 million, up 34% from USD584 million a year ago
Operating margin of 9.2%, up from last year’s 7.6%
Net income of USD475 million, up 40% from USD339 million the previous year

Last year’s first quarter operating margin would have been 8.5% excluding the one-time charge.

Read More

FedEx's wheels firmly on the ground in trucking Andrew Ward on how the delivery group's strategy to expand into the lighter truckload segment is paying off

Posted by | Sep 21, 2006 | |

FedEx is building an increasingly powerful presence in the US road freight market, expanding its delivery capabilities beyond parcels into a broader range of cargo.

Revenues from FedEx Freight, its trucking division, rose 20 per cent in the 2006 fiscal year, which ended in May, and accounted for more than 11 per cent of the group’s Dollars 32bn total.

Investors are hoping to see the positive trend continue today when FedEx reports first-quarter results.

This month, the group completed the Dollars 780m acquisition of Watkins Motor Lines, a large US truck company, further strengthening its presence in the sector. With more than Dollars 1bn of annual revenues, Watkins will increase the scale of FedEx Freight by about a third.

The deal came a year after UPS, FedEx’s biggest competitor, entered the road freight market through the Dollars 1.3bn acquisition of Overnite Corporation.

Both FedEx and UPS are focused on the Less-than-Truckload (LTL) segment, which handles lighter loads than the heavy truckload carriers.

FedEx wanted Watkins because it specialises in long haul, nationwide deliveries that differ from the group’s existing short haul, regional services.

Read More

U.S. FedEx signs airport lease, UPS on the way

Posted by | Sep 19, 2006 | |

FedEx Corp. should be starting work on its new package-sorting center near Charlotte County Airport within the next four to six weeks — and UPS won’t be far behind in expanding its airport facility.

Last week, a developer working for FedEx signed a ground lease with the airport for 4.8 acres on Golf Course Boulevard, according to Gary Quill, airport executive director. FedEx then immediately signed a lease for the 35,000-square-foot building with the developer, Orlando-based Regional Development.

In a related development, UPS has asked the Charlotte County Airport Authority to increase its ground lease on Challenger Boulevard from 2.9 to 6.5 acres for a major expansion of the distribution center it currently operates on the site.

Don Lee, District 2 airport commissioner, said UPS’s request will be discussed at Thursday’s regular Airport Authority meeting. He anticipated no objections — indeed, UPS’s expansion has been anticipated for some time, although it’s been running on a little slower track than the FedEx deal.

Read More

USA: Federal Express awarded contract for international cargo

Posted by | Sep 17, 2006 | |

Federal Express, El Segundo, Calif., is being awarded a USD17,704,603 fixed-price requirements with economic price adjustment contract to provide for door-to-door services for international cargo movement of perishable items for the Defense Commissary Agency and the Defense Logistics Agency, parent organization of the Defense Supply Center, Philadelphia. An average of 8.5 million pounds of fresh fruits and vegetables for commissaries and restaurants, and frozen foods, milk and dry subsistence for re-stocking Navy ships, which is transported per year from San Francisco to customers in Korea, Japan and Guam plus emergency shipments throughout the Pacific. 80 percent of the shipments are to re-stock the commissaries in the Pacific. At this time, no funds have been obligated. Solicitations began June 2006 and negotiations were complete September 2006. This work will be complete September 2007. Headquarters Air Mobility Command, Scott Air Force Base, Ill., is the contracting activity

Read More

Advertisement

Advertisement

Advertisement

P&P Poll

Loading

What's the future of the postal USO?

Thank you for voting
You have already voted on this poll!
Please select an option!



View ResultsHide Results

Post & Parcel Magazine


Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.

Subscribe to the Magazine

 

Pin It on Pinterest