"FedEx and The Power Of
E-commerce and Holiday Shopping"
“FedEx posted
fiscal second
quarter earnings before the bell on Thursday, beating analysts’
expectations as the global delivery company capitalized on strong e-commerce
trends and online shopping during the holiday season. The company
reaffirmed its full-year outlook, helping the shares pop.”
E-Commerce has
helped FedEx boost revenue. With in the last few years, the economy has been in
a downfall. Many companies are offering better deals online than you can
receive in store. Cyber Monday, black Friday, Amazon and Wal-Mart. “These
provide a big boost for retailers and companies like FedEx and UPS.”
“Operating income surged 66% to $780 million helping FedEx stretch its
operating margin to 7.4%, from 4.9% in the same quarter in 2010. The
company highlighted higher yields and volumes, but saw rising fuel prices and
input costs as a possible obstacle going forward.” “On that note, the company
said it expects to earn between $1.25 and $1.35 per share in their fiscal third
quarter, while reaffirming its fiscal 2012 outlook of $6.25 to $6.75, despite a
weak global economy, increased volatility, and rapidly fluctuating fuel and
input prices.” This has allowed FedEx to expand purchasing new equipment such
as transportation methods and increase fuel efficiency. FedEx has big plans.”
FedEx also announced it reached an agreement with Boeing
to buy 27 new 767-300F to replace its old MD10 fleet. The planes, set to
arrive between 2014 and 2018, will provide improved reliability, a 30% increase
in fuel efficiency, and a 20% reduction in unit operating costs. But
FedEx also said it was delaying the delivery of 11 777 aircraft given
adjustments to its network, particularly in Asia, in response to recent inventory
destocking trends.” This article states that even though e-commerce can hurt
some businesses by online buying, it also helps other companies like UPS and
FedEx. Many companies do have online shopping sites. This allows them to hold a
special promotion, or even a deal only online. Also you may find that the
product is not stocked in stores which makes it only available online. I feel
e-commerce is not necessary the way of the future but is very influential in
sales and promotion.
This article put in perspective of how big and important companies like FedEx are. Everyone ships products and FedEx is by far the biggest postage service. I like how you gave statistics in your article so it made it easy to understand their incomes and its finicial outlooks. Also, i found it interesting and enjoyed learning about how they are buying new aircrafts to cut down on costs and save money. This is very smart for the company. Any penny you can save is a plus. I don't see FedEx ever going down unless some scandal occurs.
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