FedEx just warned the whole globe is slowing

Kate Rooney | @Kr00ney

Published 5 Hours Ago Updated 3 Hours AgoCNBC.com

• FedEx reported declining international revenue as a result of unfavorable exchange rates and the negative effects of trade battles.
• "Slowing international macroeconomic conditions and weaker global trade growth trends continue, as seen in the year-over-year decline in our FedEx Express international revenue," says Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer.
• FedEx reported weaker-than-expected third-quarter earnings and revenue after the closing bell on Tuesday, and cut full-year guidance.

Alexander Shcherbak | TASS | Getty Images

DHL containers and a FedEx airliner at Hong Kong International Airport, in the Hong Kong Special Administrative Region (HKSAR) of the People's Republic of China.

A top executive at FedEx is flagging serious concerns in the global economy.

The multinational package delivery service reported declining international revenue as a result of unfavorable exchange rates and the negative effects of trade battles.

"Slowing international macroeconomic conditions and weaker global trade growth trends continue, as seen in the year-over-year decline in our FedEx Express international revenue," Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer, said in statement.

FedEx reported weaker-than-expected third-quarter earnings and revenue after the closing bell on Tuesday, and cut its full-year guidance. Shares fell more than 4 percent in after-hours trading.

Despite a strong U.S. economy, FedEx said its international business weakened during the second quarter, especially in Europe. FedEx Express international was down due primarily to higher growth in lower-yielding services and lower weights per shipment, Graf said.

To compensate for lower revenue, Graf said FedEx began a voluntary employee buyout program and constrained hiring. It is also "limiting discretionary spending" and is reviewing additional actions.

FedEx shares have dropped roughly 27 percent in the past year, lagging the XLI industrial ETF's 1 percent decline.

The U.S. and China remain locked in an ongoing stalemate on trade tariffs. On Tuesday, there were multiple reports about progress on negotiations between the world's two largest economies. According to Bloomberg, some U.S. officials fear that China is reneging on certain trade concessions.

WATCH: FedEx slowdown not surprising

Robert Reich: Why Unions Matter To You

https://youtu.be/402m57yFjTM

FedEx truck flipped by ferocious Texas wind

A storm chaser said that "strong winds were being funneled through a pair of grain elevators which caused the trucks to tip over."

By

 Ashley

 -

March 15, 2019

A storm chaser captured the moment that a FedEx truck fell prey to high wind gust in Texas this week.

The video was captured by storm chaser Blake Brown in Amarillo, Texas, on Wednesday, March 13.

Brown writes:

MUST WATCH!
Insane day today.. Amarillo TX had winds sustained at 64 MPH for a bit and gusts to 80 MPH! Damage all around town, over 40 semi trucks blown over just in the Amarillo area. I was able to capture 2 trucks being blown over on Lakeside just north of I-40. Strong winds were being funneled through a pair of grain elevators which caused the trucks to tip over.

Brown’s video includes several more minutes of semi truck drivers struggling against the strong winds after the FedEx truck flips.

You can check out the video below.

FedEx Stock Is Falling After a Bull Cut Her Price Target Ahead of Earnings

While Cowen & Co. is braced for less-than-stellar results from FedEx’s international express unit, the firm still thinks the shares are worth buying.

By

 

Teresa Rivas

March 14, 2019 11:46 a.m. ET

• 
 
• 
 
• 
 
• 

FedEx (FDX) is lower Thursday after another bull lowered her price target. The company will report earnings next week, and while Cowen & Co. is braced for less-than-stellar results from FedEx’s international express unit, the firm still thinks the shares are worth buying.

The back story. FedEx shares are off nearly 30% in the past 12 months. The logistics giant—and main rival United Parcel Service (UPS)—handled the high volume of packages well this holiday season, but that didn’t translate into stock gains for either. Both companies were hit by late 2018 market tumbles, but their problems extend farther back than the fourth quarter. FedEx and UPS have had to invest heavily to increase their capacity at the same time that Amazon.com (AMZN) is testing delivery options of its own.

FedEx didn’t do much to comfort investors when management lowered its outlook for the year, and many analysts see hopes that Amazon could buy FedEx as a pipe dream. Even bulls have argued that patience is necessary.

What’s new. FedEx is slated to report earnings Tuesday, March 19, after the close of regular trading. Analysts are looking for EPS of $3.16 on revenue of $17.7 billion.

Cowen’s Helane Becker reiterated an Outperform rating on Thursday, but she lowered her price target to $237 from $242 “to reflect the current operating environment.” She believes that FedEx’s International Express business is likely to remain weak, with Brexit weighing on its Europe business, although she thinks the negative news is already baked into FedEx’s share price.

ADVERTISEMENT

Looking ahead. Becker admits that Europe is a concern and international operations will likely continue to be soft. That said, she writes that U.S. operations look robust, with solid pricing trends, while FedEx is reaping some of the benefits of past investments in its business.

Longer term, she’s heartened by the fact that the executive team has some fresh blood after recent changes, and FedEx is still targeting annual EPS growth of 10% to 15%. The stock’s forward valuation looks “depressed” to boot, and a revision to the five-year mean “could drive meaningful shareholder returns.”

FedEx was down 0.5% to $178.67 in recent trading.

Write to Teresa Rivas at teresa.rivas@barrons.com

FEDEX FREIGHT DRIVERS JOIN TEAMSTERS

Laval, QC, March 9, 2019 — Teamsters Local Union 931 has filed a request for union certification on behalf of approximately 30 owner operators at FedEx Freight. The Montréal-based workers make deliveries and drive semi-trucks for a living.

Teamsters have been actively organizing FedEx drivers from coast to coast to coast. Workers at a FedEx warehouse in Surrey, BC, have also chosen Teamsters Local Union 31 to represent them.

“That was our first major organizing victory, after FedEx pilots joined in the United States,” explained the president of Teamsters Canada, François Laporte. “These workers want better and they deserve better.”

The formal request for union certification was filed on Thursday with the Canadian Industrial Relations Board.

“I would like to welcome the FedEx Freight workers into the big Teamster family,” added the president of Teamsters Local Union 931, Richard Lamoureux. “Teamsters are the dominant union in the transportation industry in North America. These workers make the right choice.”

The presidents of Teamsters Canada and Teamsters Local Union 931 also wanted to thank organizers Alain Coursol and Alain Turcotte for their excellent work, as well as the workers who helped with the union drive.

Teamsters represent close to 125,000 workers across Canada, including over 17,000 workers in the courier industry and over 15 000 long-haul truckers. The International Brotherhood of Teamsters, with which Teamsters Canada is affiliated, has 1.4 million members in North America.

-30-

Media requests :

Stéphane Lacroix
Director of Communications and Public Affairs (Québec)
Cell : 514 609-5101
slacroix@teamsters.ca