FedEx Boosts Forecast as Sweeping Overhaul Gains Traction
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FedEx raised the low end of its full-year profit and sales outlook, signaling the company’s efforts to slash costs and streamline its delivery networks are bearing fruit as demand improves. Adjusted earnings will be $17.80 to $19 a share for the fiscal year, the courier said in a statement Thursday, raising the low end of its prior profit forecast. FedEx is undertaking a massive restructuring of its delivery network by merging its historically separate ground and air cargo systems. The rosier outlook and a second-quarter profit that beat expectations indicate that the initiative is yielding results as shipping demand improves after a prolonged period of weakness.
Bloomberg Intelligence Senior Transportation & Logistics Analyst Lee Klaskow joins Bloomberg Businessweek Daily to discuss. He speaks with Carol Massar and Tim Stenovec. (Source: Bloomberg)