MarketWatch reports FedEx profit down 1.1% on manufacturing slowdown
- FedEx says a weak economy drove a shift to non-premium services
- Volume in its priority international export segment was down 2%
- Company plans to detail its cost-cutting effort during a meeting next month
- “Exports and trade have gone down at a faster rate than global trade has” says CEO
- Company lowered its full-year earnings view, now seeing $6.20 to $6.60 a share, down from an already-disappointing forecast of $6.90 to $7.40 in June
- Daily package volume fell 5% in the U.S. but rose 1% abroad on improvement in Europe and Asia
FedEx Shipments vs. GDP
The above chart from Bloomberg. I picked up in “tweet” by Kevin Depew.
Tim Wallace pinged me this morning with a note “Aug-Sep early numbers are running 3% negative to last year, September actually running -3.5% now. This is not a good sign.”
For detailed charts of monthly petroleum, gasoline, diesel, and jet fuel numbers please see Email From Lead Analyst, Weekly Petroleum Supply Team on Possibility of Recession.
Also note dismal retail sales numbers as posted in California August Sales Tax Collection Down 20% From Year Ago, Total Revenues Down 5.5%, Income Tax Up 11.6%; Spending Out Of Control By $3 Billion
Mike “Mish” Shedlock
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