For example, youll be surprised how counter-intuitive the stock valuation is for United Parcel Service vs. Sprouts Farmers Market.See allTrefis Price EstimatesandDownloadTrefis Datahere, Whats behind Trefis? Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate; our ability to meet our labor and purchased transportation needs while controlling related costs; a significant data breach or other disruption to our technology infrastructure; the continuing effect of the COVID-19 pandemic; anti-trade measures and additional changes in international trade policies and relations; the effect of any international conflicts or terrorist activities, including as a result of the current conflict between Russia and Ukraine; our ability to successfully implement our business strategy, effectively respond to changes in market dynamics, and achieve the anticipated benefits and associated cost savings of such strategies and actions, including our ability to successfully implement our FedEx Express workforce reduction plan in Europe and to continue to transform and optimize the FedEx Express international business, particularly in Europe; damage to our reputation or loss of brand equity; changes in the business or financial soundness of the U.S. FedExs net income of $1.3 Bil in fiscal Q2 2021 reflected a large 2x rise from its $660 million figure in the prior-year quarter. A third independent director mutually agreed upon by the Company and the D. E. Shaw group will be added to the Board at a later date. Memphis, Tennessee-based FedEx said severance payments for between 5,500 and 6,300 layoffs will cost between $300m and $575m through 2023, but that the job cuts will save the company between $275m and $350m a year beginning in 2024. Employees also may elect a deferred annuity at age 62 if they have at least five years of service at separation. Data is a real-time snapshot *Data is delayed at least 15 minutes. Memphis, Tennessee-based FedEx now expects full-year earnings, excluding items, of $20.50 to $21.50 per share, as it had first forecast. FedEx Announces Actions to Enhance Stockholder Value and Updates to Board Governance, Policy on recoupment of incentive compensation, Policy on limitation of severance benefits. Copyright Proactive Group Holdings Inc, 2023. A Division of NBCUniversal. Forward-looking statements include those preceded by, followed by, or that include the words will, may, could, would, should, believes, expects, anticipates, plans, estimates, targets, projects, intends, or similar expressions. Shares in the company, which also reported flat year-over-year adjusted profit for the fiscal second quarter, jumped 6% to $253.00 in after-hours trading. Our interactive dashboard analysis on FedExs Pre-Earnings has additional details. In the long-term, supply chain challenges are likely to trigger a change in the trading landscape, as global trading networks shift and we see continued regionalisation of supply chains.. FedEx said it is determining which workgroups will be eligible for these incentives and the program will not include any changes to retirement eligibility or payments. Our focus is to build on this foundation and continue creating long-term value for our stockholders.. These audience insights are used to make our website more relevant. FedEx also made Board committee changes previously in March 2022 to better reflect the committees areas of oversight and strengthen their alignment with the Companys priorities and values. FedEx's rocky relationship with Amazon may have contributed to its fiscal second-quarter earnings slump, but the shipping company says it could actually turn a corner and outpace its competitor in fiscal 2021. Got a confidential news tip? Looking at the companys performance for the nine month period ending Feb, 2021, total revenue increased 18% to $16.4 billion, primarily led by a large 37% growth in ground shipments revenue, a trend expected to continue in the near term. Reuters. Reddington said that FedEx had introduced new flights over the last few months to mitigate the situation. UPS lowered its forecast for all of 2012 and said its third-quarter earnings will fall below last year's results, with many customers fearing what's in store for the second half of the year. The company is currently delivering the drug around the U.S.. It predicts global trade will grow even slower than the world's economies - a trend not seen since the recession. United Parcel Service ( UPS) - Get Free Report is planning to offer buyouts to some of its management-level employees in a bid to trim costs, even as the delivery giant . Higher revenues and margin expansion meant that FedExs EPS almost doubled to $13.17 for the nine-month period ending Feb, 2021, compared to $6.97 in the prior year period. FedEx said it expects the job reductions to produce annual operating savings of $150 million to $190 million by 2005. https://www.linkedin.com/company/fleetowner/. The dividend is payable on July 11, 2022, to stockholders of record as of the close of business on June 27, 2022. We are pleased to welcome Amy and Jim to the FedEx Board, Subramaniam said. Their skittishness was also felt in the second quarter, where UPS missed analysts' expectations for both earnings and revenue. Labor shortages disrupted normal workflows, resulting in network inefficiencies, higher purchased transportation costs, and higher wage rates. Europe was in the midst of an economic slowdown. Home; NB88 IFC. In June, the company said it was stepping up cost cutting measures and expects the European debt crisis and slowing growth in Asia to impact the domestic and the global economic conditions.FedEx said it is determining which workgroups will be eligible for these incentives and the program will not include any changes to retirement eligibility or payments.The company expects to provide more details at an investor meetings in October.Friday, FedEx stock closed at $87.80 on the New York Stock Exchange. Under the Interagency Career Placement Program, all surplus and displaced employees who work in executive branch agencies are eligible to receive career transition assistance from their agencies. FedEx Corp. (NYSE:FDX) said Monday it was offering voluntary buyouts to some of its U.S. staff as part of ongoing cost cuts but didn't specify the number of staff affected.The package delivery and logistics company, which competes with United Parcel Service (NYSE:UPS), said most of the eligible employees work for FedEx Express and FedEx Services. (1) Revenues expected to be in-line with the consensus estimates. The US delivery giant says the job cuts will happen over 18 months as it integrates former rival TNT which suffered a costly cyberattack in 2017. The company blamed the disappointing quarterly results on weak global economic conditions, rising costs associated with ground-delivery expansion, online holiday sales shifting to the third quarter and the "loss of business from a large customer," which Graf later confirmed was Amazon. These appointments were made in connection with a cooperation agreement with the D. E. Shaw group. Then TNTs computer systems became infected during a worldwide cyberattack called NotPetya, disrupting service and causing FedEx to take a $300m charge against earnings in 2017. FedEx (NYSE: FDX) recently announced a revision in surcharges for certain express and ground shipments. In September, FedEx lowered its per-share forecast range to $19.75. The speedy shipping division, which moves 3.5 million packages on an average day, has been hit hard as people shift to slower delivery methods to conserve cash. FedEx had about 245,000 employees worldwide, including about 43,000 at TNT, as of last May 31. NEW YORK - FedEx will soon begin offering buyouts to U.S. employees in an effort to cut costs in the face of a weakening global economy. FedEx Corp. has announced plans to trim about 14,000 jobs from its FedEx Express cargo unit, the company announced yesterday. We do not undertake or assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. (Photo by Budrul Chukrut/SOPA Images/LightRocket via Getty Images). You may opt-out by. (Photo by Budrul Chukrut/SOPA Images/LightRocket via Getty Images). "Without giving you specifics, we're at the bottom, and we're going to come up off the mat and we're going to improve through the rest of this year and into the next.". Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Meanwhile, demand growth continues to pick up over the first 10 months of the year cargo demand in cargo revenue tonne km terms is up by more than 8% according to IATA putting capacity under pressure. A bicyclist rides past a FedEx Corp. delivery truck in Miami, Florida. Sign up for free newsletters and get more CNBC delivered to your inbox. It will feature 250 slot machines and a 47-room hotel. We also share information about your use of our site with our social media, advertising and analytics partners who may combine it with other information that youve provided to them or that theyve collected from your use of their services. Data is a real-time snapshot *Data is delayed at least 15 minutes. Advertising Cookies collect information about your browsing habits such as the pages you visit and links you follow. The overall rebound in the economies across the globe likely aided the shipment revenues for its Express Amy Lane currently serves as a director of NextEra Energy, Inc. and TJX Companies Inc. Ms. Lane was a Managing Director and Group Leader of the Global Retailing Investment Banking Group at Merrill Lynch & Co., Inc., from 1997 until her retirement in 2002. R. Brad Martin will continue to Chair the committee, and Amy Lane, Marvin R. Ellison, Kimberly A. Jabal, Joshua Cooper Ramo, and Jim Vena currently serve as members of the committee. There is a 52 weeks of pay lifetime-maximum for severance pay. The dividend is payable July 12, 2021 to stockholders of record at the close of business on June 28, 2021. A leading Middle Eastern airline has chosen ITTS as its leading compliance Sustainability has become the most significant cultural and commercial dilemma facing us Just 60 miles from Los Angeles and centered among major transportation corridors, Ethiopian Airlines has added a freighter service between China and Belgium as Bahrain-based ACMI and charter cargo airline Texel Air has launched operations in second quarter operating income surged 9% year on year, Ethiopian adds new China-Europe freighter service, Fraport tests autonomous tractor for cargo handling, Sponsored: Middle Eastern airline chooses ITTS as the go-to compliance tool, Sponsored: Reducing air cargo carbon emissions through goSAF, Sponsored: SBD International Airport sees opportunity in every direction. The appeal must be filed during the 30-day period beginning the day after the effective date of the RIF action. FedEx CEO called Q2 2020 earnings an 'anomaly'. The latest figures from Seabury Consulting, part of Accenture, show that air cargo capacity in the first two weeks of December was down by around 4% compared with the same period in the pre-pandemic year of 2019. Employees separated by RIF normally are eligible for unemployment compensation. The LTI program also includes a capital expenditures as a percentage of revenue (CapEx/Revenue) performance metric. For as many tailwinds as FedEx had going into last night's earnings announcement, the company was no match for the 2021 two-step. Even if FedEx were to report below consensus earnings, the stock looks attractive at the current valuations. This represents a $0.40 per share, or 53 percent, increase from the previous dividend of $0.75. For as many tailwinds as FedEx had going into last night's earnings announcement, the company was no match for the 2021 two-step. ProactiveInvestors is a publisher. All rights reserved. FedEx (NYSE: FDX) is scheduled to report its fiscal Q3 2021 results on Thursday, March 18. These include: Under the terms of the cooperation agreement, the D. E. Shaw group has agreed to certain customary voting and standstill provisions. An employee in a bargaining unit covered by a negotiated grievance procedure that does not exclude a RIF must use the negotiated grievance procedure and may not appeal the RIF action to MSPB unless the employee alleges the action was based upon discrimination. NEW YORK - FedEx will soon begin offering buyouts to U.S. employees in an effort to cut costs in the face of a weakening global economy. Eligibility begins when the employee receives either a specific RIF notice of separation, or a more general notice that the employee is likely to be separated through RIF, or for declining a directed reassignment to another commuting area. [Updated: 3/16/2021] FDX Fiscal Q3 Earnings Preview. In buying TNT, FedEx succeeded where US rival United Parcel Service (UPS) had failed European regulators blocked a UPS attempt to buy the company in 2013, arguing that a UPS-TNT combination would face inadequate competition on some routes and lead to higher prices. This website uses cookies so that we can provide you with the best user experience possible. FedExs fiscal Q3 2021 earnings per share is expected to be $3.10 per Trefis analysis, 8% below the consensus estimate of $3.36. FedEx is continuing to see record-breaking, peak-like levels of volume and demand, and in FY 2021, its revenue surged pastthe $80 billion mark with the company predicting sales to eclipse $90. Certain statements in this press release may be considered forward-looking statements, such as statements relating to future capital expenditures, managements views with respect to future events and financial performance, and underlying assumptions. Raj Subramaniam, FedEx Corp. President and Chief Executive Officer, said, Through decades of investments, innovation, and expertise, we have built a global portfolio that serves as the foundation of our competitive advantage. While FedEx has seen a massive growth in ground shipments in the current pandemic driven by a rise in demand for e-commerce, the company has also seen increased operating costs, and it makes sense to pass-on the increase to customers, in order to retain or expand its margins. Shares of FedEx slid 10% on Wednesday. Going by our FedEx Valuation of $342 per share, based on expected adjusted EPS of $18.01 for fiscal 2021 (fiscal ends in June) and a P/E multiple of 19x, we believe that there is still some room left for growth. {{start_at_rate}} {{format_dollars}} {{start_price}} {{format_cents}} {{term}}, {{promotional_format_dollars}}{{promotional_price}}{{promotional_format_cents}} {{term}}. Prior to joining Union Pacific, Vena spent 40 years at Canadian National Railway Company, including serving as Chief Operating Officer and holding various senior roles across marketing, sales, operations, and engineering. The dividend is payable on July 11, 2022, to stockholders of record as of the close of business on June 27, 2022. Our dashboard on FedExs Revenues offers more details on the companys segments. Virgin Atlantic Cargo hires head of distribution, Texel Air launches New Zealand operations, I have been writing about the freight and logistics industry since 2007 when I joined International Freighting Weekly to cover the shipping sector. We use this information to make our site faster, more relevant and improve the navigation for all users. We look forward to sharing more detail on our strategy and long-term objectives at our investor day later this month., Executive Compensation Program Enhancements. The biggest story of FedEx's 2021 and arguably one of the biggest in its history will be the distribution of COVID-19 vaccines. FedEx over the recent quarters has seen an increase in demand for shipments, primarily led by a surge in e-commerce orders, as people preferred to stay in-doors, during the pandemic. Memphis, Tennessee-based FedEx now expects full-year earnings, excluding items, of $20.50 to $21.50, as it had first forecast. Coverage under the Federal Long Term Care Insurance Program continues so long as the enrollee continues to pay the premiums. 31 Mar 2021. FedEx said in a statement on Tuesday that the cuts will take place over 18 months and include express-delivery operations and back-office employees of TNT Express across the continent. The comments come after FedEx reported disappointing fiscal second-quarter results and lowered its full-year earnings outlook for 2020. More on Reductions in Force RIFs, at ask.FEDweek.com, Following is a summary from the EEOC of the Pregnant Workers Fairness Act provisions which will affect federal employees among , Following are the key sections of an OPM report on actions under the Biden administrations diversity, equity, inclusion and accessibility , Following is a Congressional Research Service report examining the background of two offsets against Social Security benefits applying to the , An IG review has found multiple security vulnerabilities and deficiencies at VA facilities, many of them related to shortages of [], OMB has issued guidance for removing TikTok from agency-issued smart phones and other devices, as required by the wrapup agency [], An inspector general report has raised issues with how well the work hours that Postal Service supervisors report are supported [], Law Enforcement Retirement Countdown Clock, Webinar: Your Federal Retirement Benefits, Public Service Loan Forgiveness (Sponsored), Report: Federal Employee Benefits & Divorce, Military Service Credit for Federal Retirement, FLTCIP Federal Long Term Care Insurance Program, FEGLI Federal Employees Group Life Insurance, Dual Employment in the Federal Government, The decision whether or not to offer a buyout even once an agency has the authority is strictly up to the agencys discretion. 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