Billions in cost-cutting initiatives helped FedEx improve earnings
The company’s net income was $1.08 billion, compared to the $875 million it reported in 2023.
There are 47 article(s) tagged Raj Subramaniam:
The company’s net income was $1.08 billion, compared to the $875 million it reported in 2023.
The increase will bring Raj Subramaniam’s base salary, first set in 2022 months after he took leadership of the company, from $1.3 million to $1.45 million.
V. James Vena, who only served on FedEx’s board for one year, has resigned. Kimberly A. Jabal will not stand for reelection.
In addition to his salary, FedEx announced Monday that Dietrich will receive a signing bonus of $200,000, which will be paid in two installments. FedEx names new CFO and EVP, announces shifts in its finance teamRelated story:
The Memphis-based company announced Monday, July 17, its hiring of John W. Dietrich to the role, which will be vacated by CFO Michael C. Lenz on July 31.Related story:
Revenue for the fourth quarter was a few billion shy compared to the $24.4 billion the company announced in the same quarter of 2022. FedEx to consolidate its Canadian Ground and Express operationsRelated story:
The executive leadership team at FedEx — guided by CEO Raj Subramaniam — will have to demonstrate to its stockholders that it is the right team to lead the company out of turbulent waters and into the future.
Following the announcement that FedEx’s operating companies will consolidate into one organization, the delivery giant’s stock was up by more than 1.2%. FedEx pilots protest outside NYSE as company announces operating consolidationRelated stories:
Expected to be completed in June 2024, the consolidation will bring FedEx Express, FedEx Ground, FedEx Services and other FedEx operating companies into Federal Express Corp.
FedEx stock was up more than 10% following an earnings release last week, with numbers high enough that the company increased its forecast for the full fiscal year.
FedEx says continued demand weakness, particularly at FedEx Express, affected its most recent earnings period.
The council advises the president on government policies and programs that affect U.S. trade performance and works to promote export expansion.
Since the first earthquake on Monday, Feb. 6, FedEx has assisted multiple nonprofit and government organizations that are responding directly to the crisis by utilizing its global trade networks.
FedEx confirmed during the company’s December 2022 earnings release that it will try to cut costs by more than $3 billion throughout the fiscal year.
Following two back-to-back quarters that saw FedEx report earnings well below company expectations, the shipping giant has been enacting sweeping cost-cutting initiatives.
Mergers and acquisitions, leadership transitions, uncertain economic conditions, global tensions — local publicly traded companies faced numerous challenges in 2022.
FedEx has identified an additional $1 billion in cost savings beyond its September forecast and now expects to generate savings of $3.7 billion.
Tuesday’s earnings call is expected to focus on how effective the company’s sweeping cost-cutting initiatives announced in September have been so far.
After Memphis-based FedEx shocked investors and said global trends had weakened profit and revenue, the company’s primary competitor still managed to beat financial analysts’ expectations. But how?
The Memphis-based company reported lower earnings for its third quarter, as consumers’ buying habits drove a decrease in demand for packaging.
In 2023, FedEx hopes to generate total cost savings of $2.2 to 2.7 billion, and the Memphis-based company plans increase some of its rates.
The shipping giant announced earlier this month that its earnings for the first quarter of fiscal year 2023 were much lower than the company’s predictions.
While FedEx stockholders presented four proposals of their own during the company’s annual meeting, each was rejected by more than 60% of voted shares.
Shareholders approved the company’s 15 nominees to the FedEx board of directors, including two who were named to the board following an agreement between FedEx and activist investor D. E. Shaw, and compensation for the company’s executive officers.
News from FedEx has left some wondering what the company’s cost-cutting measures could mean in Memphis. FedEx, the city’s largest employer, has around 30,000 employees here. Related story: FedEx closing offices, deferring hiring, reducing flights after weak quarter
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