{"id":1952650,"date":"2023-06-21T07:23:02","date_gmt":"2023-06-21T11:23:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fedex-paring-costs-grounding-more-planes-as-margin-pressure-persists\/"},"modified":"2023-06-21T07:24:53","modified_gmt":"2023-06-21T11:24:53","slug":"fedex-paring-costs-grounding-more-planes-as-margin-pressure-persists","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fedex-paring-costs-grounding-more-planes-as-margin-pressure-persists\/","title":{"rendered":"FedEx cuts costs, grounds more planes amid ongoing margin pressure."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffedex-paring-costs-grounding-more-planes-as-margin-pressure-persists%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1952650&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<p><strong>Correction:<\/strong> The share repurchase figure in paragraph 10 has been changed to $2 billion, not $2 million.<\/p>\n<p><strong>(Reuters) \u2013 FedEx<\/strong>, which is slashing costs to protect profits as demand wanes, said on Tuesday that ongoing \u201cdemand challenges\u201d prompted its plans to ground 29 more aircraft in the fiscal year that started on June 1.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>The global shipping downturn has hurt margins for the sector and FedEx\u2019s challenge is matching costs and capacity to lower demand. <\/p>\n<p>E-commerce has been particularly hard hit as the pandemic-driven online shopping bubble burst when consumers returned to stores, resumed eating at restaurants and started traveling again.  <\/p>\n<p>FedEx CEO Raj Subramaniam said on a conference call with analysts that the fresh cost-cutting moves would support sustained profit improvement in the current 2024 fiscal year \u201cthrough an environment that we expect to remain marked by demand challenges, particularly in the first half.\u201d<\/p>\n<p>The first half of FedEx\u2019s fiscal year runs through November.<\/p>\n<p>Last fiscal year, FedEx slashed 29,000 jobs, retired 18 planes, shuttered offices and pared back profit-sapping Sunday deliveries in a bid to cut $4 billion in permanent costs by the end of its 2025 financial year. <\/p>\n<p>Shares in the company fell 2.7% in extended trading on Tuesday after FedEx posted adjusted profit of $4.94 per share for the fourth quarter ended May 31, compared with $6.87 per share a year earlier.<\/p>\n<p>Its flagship Express service, which depends on aircraft to quickly whisk packages to recipients, reported weakness in the latest quarter on softer demand and customers trading down to slower and less-expensive transportation options, although executives said margins in that business would improve.<\/p>\n<p>For fiscal 2024, FedEx forecast flat to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fedex-paring-costs-grounding-more-planes-as-margin-pressure-persists\/\" title=\"FedEx cuts costs, grounds more planes amid ongoing margin pressure.\">low-single-digit-percent revenue growth versus<\/a> the prior year. That would put the range of adjusted earnings, excluding items, at $16.50 to $18.50 per share. <\/p>\n<p>The company said it would <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/shell-total-continue-buyback-bonanza-after-record-profits\/\" title=\"Shell, Total continue buyback bonanza after record profits\">buy back  billion<\/a> of its common stock in the new fiscal year. <\/p>\n<p>It also said Chief Financial Officer Michael Lenz would retire effective July 31. He will remain a senior adviser to the company until Dec 31.  <\/p>\n<\/p>\n<p> (Reporting by Priyamvada C in Bengaluru and Lisa Baertlein in Los Angeles; Editing by Matthew Lewis, Cynthia Osterman and Jamie Freed)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/business\/fedex-profit-falls-on\/attachment\/fedex-stock-tanks-amid-recession-warning-2\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>with Eric Scheiner<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>with John Leake<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>with Dr. Dave Brat<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>with Shawn Fleetwood<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>By Hyunjoo Jin and Shivangi Acharya SAN FRANCISCO\/NEW DELHI (Reuters) -Tesla chief executive Elon Musk said India\u2019s Prime Minister Narendra Modi was\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>By David Shepardson and Richard Cowan WASHINGTON (Reuters) \u2013 U.S. Senate Majority Chuck Schumer on Wednesday will call for \u201ccomprehensive legislation\u201d to\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>STOCKHOLM (Reuters) \u2013 Estonian ride-hailing and food delivery startup Bolt on Wednesday said it has signed a partnership with robotics firm Starship\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>SEOUL (Reuters) -YouTube will launch its first <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/strong-relations-between-bmw-and-china-a-win-win-ceo\/\" title=\"BMW's CEO sees the strong ties between BMW and China as mutually beneficial.\">official shopping channel<\/a> for live commerce in South Korea on June 30, Yonhap news agency\u2026 <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>FedEx plans to ground 29 additional aircraft in the new fiscal year due to ongoing &#8220;demand challenges.&#8221; The company is cutting costs to safeguard profits amidst declining demand.<\/p>\n","protected":false},"author":66,"featured_media":1952651,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[7969,3862,6858,10625,11150,4085,12356,4150],"class_list":["post-1952650","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann","tag-costs","tag-cuts","tag-fedex","tag-grounds","tag-margin","tag-ongoing","tag-planes","tag-pressure"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1952650","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1952650"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1952650\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1952651"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1952650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1952650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1952650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}