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Converting & Closing Locations
Posted on Wednesday, August 25 @ 12:33:02 EDT
NEW YORK, Aug 19, 2004 - FedEx Corp. will tell about
40 of its 300 FedEx Express World Service centers
this week that they will be closed or converted into
FedEx Kinko's stores, a company spokeswoman said on
Thursday.
The diversified transport group was expected to send
e-mails to employees detailing which centers will
be affected by the plans. The changes are part of
an ongoing effort to improve customer service in the
months following its $2.4 billion purchase of Kinko's.
Employees at the affected retail centers will be
offered positions within FedExpress, according to
spokeswoman Sandra Munoz. The move marks one of the
first employee shifts since the Kinko's deal, she
said.
FedEx was unable to confirm exactly how many employees
would be affected. However, the FedEx Express World
Service group employs some 900 people in the 300 stores
-- a fraction of the company's more than 245,000 staff
worldwide.
The stores will be closed or converted between October
and November, Munoz said.
Shares of FedEx fell 35 cents to $78.95 in late morning
trading on the New York Stock Exchange.
Source: Reuters
FedEx Boosts Profit Forecast
Posted on Tuesday, August 24 @ 15:00:11 EDT
NEW YORK, Aug 23, 2004 - FedEx Corp. (FDX) on Monday
raised its earnings forecast for the fiscal first
quarter and full year due to strong demand in several
of its businesses despite concerns about the slowing
growth in the U.S. economy.
Shares of the No. 1 air-express shipper climbed 3.2
percent, in afternoon trading.
The company said strong demand for its international
express, ground and less-than-truckload services,
or freight from several shippers consolidated into
a truckload, was driving the higher outlook.
While prolonged high oil prices could hurt the world
economy, the company expects its business to remain
strong, Chief Financial Officer Alan Graf said, adding
the economy was expected to stay on a path of sustainable
expansion. President George W. Bush's economic advisers
have warned that high energy prices have become a
drag on the U.S. economy and not merely a threat to
growth.
But FedEx's outlook cheered some analysts. Lehman
Bros. analyst Jennifer Ritter said, "If you read
the paper, it seems like the economy is about to stall
on us. They are clearly not seeing that, so that's
good news."
Companies in the shipping and transport business
have recently experienced strong demand amid the economic
expansion, manufacturing recovery and strong import
growth.
Memphis-based FedEx said it now expects earnings
of $1 to $1.10 per share for the first quarter, ending
Aug. 31, and $4.40 to $4.60 for the year. It previously
forecast 90 cents to $1 per share for the quarter
and $4.20 to $4.40 for the year.
Wall Street analysts, on average, expected 96 cents
a share for the quarter and $4.48 for the year, according
to Reuters Estimates.
FedEx also said it will boost capital spending to
between $2 billion and $2.1 billion in fiscal 2005
to expand the capacity of its international express,
ground and freight networks. In June, it forecast
fiscal 2005 capital spending of $1.6 billion.
Ritter, who has an "overweight" rating
on the shares, said the increase in capital spending
is another sign the company does not see the economy
sputtering out.
"You don't do that lightly," she said.
"If they are doing that, there must be a lot
of growth.
IMPROVING MARGINS SEEN Merrill Lynch analyst Ken
Hoexter raised his price target on FedEx shares by
4 percent to $93 and increased his earnings estimates,
as well as his expectations for volume growth in its
international priority and freight businesses.
In a research note, Hoexter also said he expects
FedEx to improve margins with a cost-cutting program
in its core Express division.
FedEx's forecast also bodes well for rival United
Parcel Service Inc. (UPS.N: Quote, Profile, Research)
, Hoexter said. With FedEx citing strength in international
business, he expects UPS to continue to see international
margins surpass domestic margins in the third quarter
and strong domestic ground volume growth, driven by
the expanding economy.
"I think we're at a point right now where capacity
is tight for the entire transportation supply chain
and carriers have been able to take advantage of pricing,"
said Avondale Partners analyst Jason Seidl. "In
a nutshell, most carriers are telling me things are
good."
FedEx stock rose $2.55 to $81.85 Monday on the New
York Stock Exchange. UPS shares climbed 51 cents to
$71.82 also on the NYSE.
Source: Reuters by Reshma Kapadia
FedEx Buys Parcel Direct
Posted on Monday, August 09 @ 19:28:30 EDT
NEW YORK, Aug 9 2004 - FedEx Corporation on Monday
said it has agreed to buy parcel coordinator Parcel
Direct for $120 million in cash to help it serve catalog
and online retail customers looking to deliver packages
to homes.
FedEx said in a statement the deal to buy the unit
of Quad/Graphics is expected to close during the second
fiscal quarter, which ends Nov. 30. It also said the
acquisition is not expected to have a material effect
on the fiscal 2005 financial results of FedEx.
Parcel Direct, based in New Berlin, Wisconsin, has
about 450 employees and generated about $130 million
in net revenue in 2003.
FedEx said the company, which will become a unit of
FedEx Ground, has developed a model for parcel consolidation
tailored to meet the needs of high-volume shippers
using the United States Postal Service's parcel select
service.
In the statement, FedEx said its catalog and online
retail customers are looking for more cost-effective
ways to ship low-weight, less time-sensitive goods
to residential customers.
It has been addressing this market since 2000 and
growing the business largely through acquisitions.
Shares of FedEx NYSE:FDX
were down 8 cents, at $78.06 in late morning trade
on the New York Stock Exchange.
Source: Reuters
Discrimination Lawsuit
Posted on Friday, July 09 @ 15:58:05 EDT
SAN FRANCISCO, November 12, 2003 - Lieff Cabraser
Heimann & Bernstein, LLP, with co-counsel, represents
African American and Latino employees of defendant
FedEx Express in its Western Region in a class action
lawsuit.
The Western Region of FedEx Express consists of employees
in the states of Alaska, Arizona, California, Colorado,
Hawaii, Nevada, New Mexico, Oregon, Utah, Washington,
and Wyoming.
Plaintiffs allege that FedEx Express has discriminated
against minority employees on the basis of race with
respect to initial job assignment, compensation, promotion
and employee discipline. The lawsuit, entitled Satchell,
et al. v. FedEx Express, was filed in 2003 in United
States District Court in San Francisco, California.
Plaintiffs' Allegations
Plaintiffs, African American and Latino employees
of FedEx Express, allege the company engages in racial
discrimination in violation of Federal and California
law. Specifically, plaintiffs charge that FedEx Express
has a system of highly subjective and arbitrary decision
making that has had an adverse impact on minority
employees and lower level minority managers than compared
to non-minority employees and managers with the similar
work experiences and qualifications. The alleged discrimination
has negatively impacted class members with respect
to initial job assignment, promotion to permanent
and full-time positions and to management; compensation;
and discipline.
Proposed Classes and Relief Sought
The class action lawsuit consists of two proposed
classes of minority employees. The first class consists
of all African American and Latino hourly Handlers,
Couriers, Shuttle Drivers, Customer Service Agents,
Cargo Handlers, Ramp Agents, Equipment Operators,
and Ramp Transit Drivers working in FedEx's Western
Region at any point from October 17, 1999 until the
date of judgment in the case.
The second class consists of all African American
and Latino Operations Managers and other managers
below the level of Senior Manager working in FedEx's
Western Region at any point from October 17, 1999
until the date of judgment in the case.
Among the relief plaintiffs seek is back pay, front
pay, compensatory damages for emotional distress,
and damages for lost compensation and job benefits
that they would have received but for the alleged
discriminatory practices.
There has been no determination by the court of the
merits of plaintiffs' allegations or whether the case
is entitled to class action status.
Contact Lieff Cabraser
Current or former African American and Latino employees
of FedEx Express that wish to report their work experiences,
or others with information about Plaintiffs' allegations,
are welcome to contact an attorney at Lieff Cabraser
Heimann & Bernstein, LLP 1-800 254-3079.
For more information or status about this case visit
www.racecaseagainstfedex.com
This news release was published with permission and
copied from the website of Lieff Cabraser Heimann
& Bernstein, LLP
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