The American courier and parcel delivery group FedEx announced on Tuesday new economic measures which should allow it to compensate for a slowdown in its activity.
After having already unveiled a plan to reduce its annual expenditure by 2.2 to 2.7 billion dollars, or between 2.0 and 2.5 billion francs, the group from Memphis (Tennessee) has added a billion to it. savings, according to a statement released on Tuesday.
It now anticipates a cost contraction of $3.7 billion for its entire staggered 2023 fiscal year, which runs through the end of May.
The measures include in particular a reorganization of its air network, which will lead to the immobilization of several aircraft, to take into account the lower volumes transported.
Although it was partially offset by the 8% increase in the average price charged, this slowdown in activity explains the 64% drop in operating profit for the FedEx Express branch, which includes air freight.
FedEx also recorded lower volumes for the FedEx Ground business, which handles letters and parcels weighing up to 68 kg.
But cost-saving measures and a 13% increase in the average tariff made it possible to increase operating profit by 24%.
As for the FedEx Freight division (shipping over 68 kg), it also benefited from the significant increase in the average price invoiced (+18% on average).
Very dependent on trade and the dynamism of the economy, the results and forecasts of courier groups are often considered as leading indicators of the economy.
Over the entire second quarter of its staggered fiscal year, which ran from September to November, the company recorded a turnover of 22.8 billion dollars, down (-3%) and significantly below expectations.
On the other hand, net profit came out well above analysts’ forecasts, at $788 million.
/ATS