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FedEx Lost $30 Million Suit
Posted on Tuesday, July 06 @ 14:47:53 EDT
WASHINGTON, July 2, 2004 - A federal appeals court
on Friday upheld Bush administration rules for calculating
post-Sept. 11 aid to airlines, strengthening the government's
claim it overpaid FedEx Corp. NYSE:FDX by $30 million.
The three-judge appeals panel denied or dismissed
claims by the cargo giant that Transportation Department
regulations for distributing $5 billion in cash grants
to airlines to offset losses from the 2001 hijack
attacks were flawed.
FedEx sued on grounds accounting and other formulas
for calculating payments were inconsistent with the
law that established the $15 billion emergency program
of cash grants and loan guarantees for the airline
industry.
The Transportation Department has distributed $4.63
billion in cash to 427 airlines. The government also
awarded loan guarantees to six airlines totaling $1.56
billion.
The Transportation Department has not formally demanded
reimbursement from FedEx but an agency spokesman said
the decision clearly upholds the basis for its contention
that FedEx was overpaid.
A spokeswoman for FedEx had no immediate comment.
Source - Reuters
Rate Increase
Posted on Sunday, June 27 @ 17:12:15 EDT
MEMPHIS, Tenn., May 24, 2004 (BUSINESS WIRE) -- FedEx
Freight NYSE:FDX will implement a 5.9 percent general
rate increase effective June 14, 2004.
The increase will apply to interstate and intrastate
traffic, and selected shipments between the United
States and Mexico and Canada. Various additional adjustments
will include select minimum and accessorial charges
as well as some select lanes and service areas.
FedEx Freight is a leading U.S. provider of regional
and inter-regional less-than-truckload (LTL) freight
services and a subsidiary of FedEx Corp. NYSE:FDX.
Source: Business Wire
Special Delivery
Posted on Saturday, June 26 @ 03:43:47 EDT
FedEx Corp. NYSE:FDX - News, the world's No. 1 air-express
shipper, on Wednesday delivered a 47 percent jump
in quarterly earnings on healthy demand across its
U.S. and global markets.
FedEx also signaled more good business ahead and
raised its earnings guidance.
For the fiscal fourth quarter ended May 31, the Memphis,
Tennessee-based transport group said profit rose to
$412 million, or $1.36 a share, from $280 million,
or 92 cents a share, a year earlier. Excluding business
realignment costs and the benefit of a tax rate change,
FedEx said it earned $1.33 per share.
Wall Street analysts' average profit forecast for
FedEx, whose businesses include U.S. ground deliveries
and trucking, was $1.33 a share excluding the unusual
items, according to Reuters Estimates.
Shares of FedEx rose $1.62, or 2.07 percent, to $80.05
after the earnings report and a conference call with
analysts.
"FedEx is hitting on all cylinders," said
Jim Corridore, an analyst at Standard & Poor's
who owns no FedEx stock.
He reiterated a "buy" rating on the stock,
with a 12-month target of $106, and raised his fiscal
2005 share-profit forecast for FedEx from $4.25 to
$4.35.
FedEx raised its fiscal 2005 profit guidance to a
range of $4.20 to $4.40 per share from the $4 to $4.20
estimate given in April, with executives telling institutional
investors that strong demand for FedEx services had
continued into June.
"We have strong momentum in our business,"
FedEx Chief Executive Officer Frederick Smith said.
Quarterly revenue, which included $521 million from
FedEx's February acquisition of the Kinko's chain
of business centers, totaled $7.04 billion, up 21
percent from $5.83 billion a year earlier. Analysts
had projected just under $6.8 billion, according to
Reuters Estimates.
Revenue at the company's signature FedEx Express
unit rose 10 percent to $4.7 billion, while revenue
at the smaller Ground unit rose 15 percent and Freight
increased 21 percent.
FedEx Ground, which competes directly with United
Parcel Service Inc. (NYSE:UPS), the segment leader,
topped $1 billion in quarterly revenue for the first
time, executives said.
Operating income at Express, which specializes in
rapid deliveries, jumped 38 percent to $407 million,
in part because of staff reductions and other savings
from a restructuring. Domestic volume rose 2 percent
at Express, while International Priority volume jumped
12 percent.
The company's FedEx Freight unit, which is a shared-loads
transporter of large cargoes under 10,000 pounds,
had revenue of $758 million. Operating income leaped
63 percent surge to $80 million as it benefited from
booming demand for U.S. shared-loads transport.
Source: Michael Connor - MIAMI (Reuters)
Critical Pickup Missed
Posted on Friday, July 09 @ 03:07:36 EDT
A shipping mix-up has cost dozens of UC Berkeley students
a chance to win prestigious Fullbright Fellowships.
University officials had the applications ready to
send out on the due date but a FedEx courier did not
pick them up until the following day. The US Department
Of Education says a deadline is a deadline and will
not make an exception.
Fullbright awards range from $20,000 to more than
$60,000. Last year half of the Cal students who applied
were successful.
Source: KTVU Morning News 2/5/04
Pilots, Home Delivery Contractors, Couriers, Customers,
FedEx Kinko's
Undercover Investigation
Posted on Saturday, June 26 @ 03:37:43 EDT
FEDEX RACISM, DRUGS, THEFTS & FRAUD - An undercover
investigation by Gary Rullo for the Air Force Office
of Special Investigations (OSI).
According to Gary Rullo, the OSI uncovered nationwide
FRAUD by FedEx of every CSS military shipment which
they investigated and he learned racism, drugs, theft
and fraud were common at FedEx.
View or download FedEx Racism, Drugs, Thefts &
Fraud pdf inside or
Read 177 pages from FedEx Racism, Drugs, Thefts &
Fraud online
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