Do you see the problem and common theme?
It's all about growth in Asia ie. China, and that growth in a repressive Communist country is not something that can be relied upon to pull the US away from its death march.
There's a contradiction here
...The company, a bellwether for U.S. economic health,
-----
FedEx boosts 1st-qtr, year earnings forecasts
FedEx raises 1st-qtr, year earnings forecasts on booming international shipments; shares up
In another sign of confidence for the global economy, FedEx Corp. on Monday, July 26, 2010, sharply raised its earnings outlook for its fiscal first quarter and full year. (AP Photo/Mark Lennihan, file)
Samantha Bomkamp, AP Transportation Writer, On Monday July 26, 2010, 10:29 am
NEW YORK (AP) -- In another sign of confidence for the global economy, FedEx Corp. on Monday raised its earnings outlook for the current quarter and full year.
The world's second-largest package delivery company said an overall boom in air and truck shipments is being driven by its speedy international priority service, where it ships high value goods like computers and iPhones. Shipments are particularly strong out of Asia, FedEx said.
International priority shipments are expected to jump 20 percent this quarter -- showing that customers are increasingly willing to pay more to get packages faster.
FedEx Corp. shares climbed $3.60, or 4.6 percent, to $82.56 in morning trading Monday.
Because of its renewed optimism in its business, the Memphis, Tenn., company said it will fully reinstate the company match for 401(k) plans across the company on Jan. 1. FedEx said late last year it would reinstate half of the company match for most U.S. employees that it rescinded when the economy was near its worst point. The cost of this move is baked into the company's new earnings forecast.
The company, a bellwether for U.S. economic health, expects to earn between $1.05 and $1.25 per share for its first fiscal quarter ending Aug. 31. That's up from 58 cents per share reported for the year-earlier quarter and above its previous guidance for this quarter of 85 cents to $1.05 per diluted share.
For the full year, FedEx expects earnings per diluted share of $4.60 to $5.20, up from $4.40 to $5.00 a year ago, reflecting the current market outlook for fuel prices and a continued moderate recovery in the global economy.
The company reported earnings of $3.76 per diluted share last year.
FedEx will release first quarter results on Sept. 16.
FedEx's forecast comes on the heels of several strong earnings reports from other major companies. FedEx's larger rival UPS on Thursday expressed confidence that the "slow pace" of economic recovery in the U.S. can be overcome by increased prices and strong international shipments. The Atlanta company raised its full-year outlook for the second time since January. |
