FedEx has said it will ask its shareholders to approve removing the company’s supermajority voting requirements at a September 2006 meeting. The supermajority provision is required for actions such as merger approval, amending fair price provisions and changing the board into classes with staggered terms.
Read MoreFedEx Express will now have the rights to operate three additional weekly frequencies to China, bringing its total to 26. With these frequencies, which were awarded by the US Department of Transportation, FedEx Express will maintain its leadership position with more all-cargo flights to and from China than any other US cargo airline. “FedEx saw the promise in China more than 20 years ago. China’s role in the global marketplace continues to escalate. In fact, China is expected to be the fastest- growing market for air cargo, averaging more than 10 percent per year between 2003 and 2023,” said Michael L. Ducker, executive vice president, International for FedEx Express.
Read MoreFedEx increased its full-year earnings target and said the economic outlook remained stable, after announcing a 35 per cent rise in third-quarter profits.
The better-than-expected results were driven by strong growth in US ground deliveries during the busy Christmas holiday season and continued expansion in its international express business. FedEx has been among the best performers in the transportation sector during recent years as global trade increases and manufacturers and retailers shift towards just-in-time supply chains. Fred Smith, chief executive, said the world economy remained robust, and predicted US growth of 3.2 per cent during the company’s 2007 fiscal year, which begins in June. Mr Smith said FedEx remained on the lookout for acquisitions as the global transport and logistics industry consolidated. But he said the company would not be rushed into deals. “We’re not going to overpay for something because it simply destroys shareholder value and we need to make sure there is a great synergy,” he said.
FedEx Corporation today reported earnings of USD1.38 per diluted share for the third quarter ended February 28, compared to USD1.03 per diluted share a year ago, a year-over-year increase of 34%. Highlights from the consolidated results for the third quarter include: revenue of USD8.00 billion, up 9% from USD7.34 billion the previous year, operating income of USD713 million, up 29% from USD552 million a year ago and net income of UD428 million, up 35% from UDS317 million the previous year. “FedEx continues to deliver strong results by providing outstanding customer service around the world and by crisply executing our strategy of balancing volume and revenue growth with cost containment to improve our margins,” said Frederick W. Smith, chairman, president and chief executive officer of FedEx Corp. “With our broad portfolio of services, FedEx is uniquely positioned to take advantage of continued growth in the global economy.”
Read MoreGlobal express and courier major TNT has pledged investment of Euro 100 million in India in the next five years. Blue Dart Express, in which DHL took a 68% stake in 2004, will induct two of the latest generation 757 aircraft into the Indian market in June taking its fleet size to 7. First Flight Couriers will also ramp up its fleet in June as part of a Rs 50 cr infusion. Even Anil Ambani controlled Reliance Capital recently acquired a 44% stake in the Rs 150 cr DTDC.
With such large investments in the pipeline, the Rs 4,000 cr express and courier industry is vociferous in its protest against a government move to yet again table the Indian Postal Act Amendment Bill which will allow the department of posts the authority to regulate the industry and also to reserve the business in the below 500 gms category for India Post only.
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