Home News FedEx Raises Package Rates, Suggests Cost Cuts

FedEx Raises Package Rates, Suggests Cost Cuts

by SuperiorInvest

FedEx outlined plans to park planes, suspend some Sunday deliveries and close corporate offices after a drop in demand hit its first-quarter earnings and prompted the company to withdraw its forecast last week.

FedEx also said it plans to raise shipping rates by an average of 6.9% on most of its services starting in January to counter the global slowdown. The average number of packages FedEx processed per day for the quarter was down 11% from a year earlier. However, fuel surcharges helped offset the lower package volume operating costs weighed profit margins.

The company said that his earnings per share (EPS) down 21% for the quarter. She blamed the rapidly deteriorating global economy. The company said it expects the actions it is taking will add $2.2 billion to $2.7 billion in cost savings in fiscal 2023.

FedEx (FDX) shares fell 3% in premarket trading and have lost 40% of their value so far this year.

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