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To: Broken_Clock who wrote (172640)	12/19/2008 7:40:19 PM
From: MulhollandDrive	Respond to of 306849

oh my... not only mickey d's....how 'bout FedX??? yikes.... biz.yahoo.com FedEx Corp. Reports Second Quarter Earnings Thursday December 18, 7:44 am ET Announces Broad Cost Reduction Actions Due to Weak Economy MEMPHIS, Tenn.--(BUSINESS WIRE)--FedEx Corp. (NYSE: FDX - News) today reported earnings of $1.58 per diluted share for the second quarter ended November 30, compared to $1.54 per diluted share a year ago. “Our financial performance is increasingly being challenged by some of the worst economic conditions in the company’s 35-year operating history,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “We are managing our costs and taking full advantage of market opportunities, and our team members are delivering every day on our promise to ‘make every customer experience outstanding’. However, with the decline in shipping trends during our second quarter and the expectation that economic conditions will remain very difficult through calendar 2009, we are taking additional actions necessary to help offset weak demand, protect our business and minimize the loss of jobs.” Cost Reductions FedEx has already taken actions to reduce over $1 billion of expenses for all of fiscal 2009, including: * Elimination of variable compensation payouts * Hiring freeze * Volume-related reductions in labor hours and line-haul expenses * Discretionary spending cuts * Personnel reductions at FedEx Freight and FedEx Office FedEx is now implementing a number of additional cost reduction initiatives to mitigate the effects of deteriorating business conditions, including: * Base salary decreases, effective January 1, 2009: o 20% reduction for FedEx Corp. CEO Frederick W. Smith o 7.5%-10.0% reduction for other senior FedEx executives o 5.0% reduction for remaining U.S. salaried exempt personnel * Elimination of calendar 2009 merit-based salary increases for U.S. salaried exempt personnel * Suspension of 401(k) company matching contributions for a minimum of one year, effective February 1, 2009 These additional actions are expected to reduce expenses by $200 million during the remainder of fiscal 2009 and approximately $600 million in fiscal 2010. In addition to these actions, each operating company is evaluating other measures should business conditions further deteriorate.