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Wednesday, December 17, 2008
5:29 PM | Author: Brett Bumeter - Unknown | | | Edit Post
The current economic crisis is really beginning to wear on shipping companies nationwide, and the good folks at Fed/Ex are rally beginning to see there share value dropping to the tune of 11% as of the end of last week. In addition to shares dropping 11%, Fed/Ex also just slashed their projected financial outlook for the next calender year. On December 18th Fed/Ex is expected to deliver their actual '09 outlook and it doesn't look too pretty.
"Fedex also sharply lowered its previously announced fiscal 2009 earnings forecast, to a range of $3.50 to $4.75 per share, from $4.75 to $5.25, as "significantly weaker macroeconomic conditions are expected to offset the benefits from lower fuel prices and the announced departure of DHL from the U.S. domestic package market."
In addition to this glum forecast by Fed/Ex, UPS has also had similar issues during this crisis and it will be interesting to see just how far down the rabbit hole we wind up. I suspect that we are only seeing the beginning of this and that things will likely get worse after the holiday season due to the fact that folks wont be sending as much freight and packages via the two carriers.
Source Article: SupplyChainExec