TribLIVE

| USWorld


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

FedEx has plan to keep profit high

Daily Photo Galleries

By Bloomberg News
Tuesday, Oct. 9, 2012, 10:06 p.m.
 

MEMPHIS — FedEx Corp. will take steps to cut costs and boost profit by $1.7 billion during the next three years to reposition the company as customers shift to slower, cheaper deliveries from costlier overnight shipments.

Chief Executive Officer Fred Smith set that target on Tuesday in a speech to analysts and investors in Memphis without saying how the goal will be achieved. Details, including savings and efficiency gains, will be made public at a meeting starting at 9 a.m. on Wednesday.

The changes will allow the operator of the world's largest cargo airline to “deliver the performance to ensure the near- and long-term success of FedEx,” Smith said in prepared remarks. “We believe we can do this even in low-growth environments for global trade and within the major economies.” The size of the target reflects FedEx's view that the move of some customers to ground, freight and even ocean shipping is permanent and not a temporary change linked to a slowing economy.

FedEx also announced that David F. Rebholz, president and chief-executive officer of Moon-based FedEx Ground, will retire effective May 31.

Rebholz, a native of Milwaukee who will be 60 when he retires, has led FedEx Ground operating unit since January 2007. He also serves on the Strategic Management Committee of FedEx Corp. A successor will be named later.

 

 
 


Show commenting policy

Most-Read Nation

  1. NYC’s High Line completed, culminating 15-year effort
  2. White House breach ‘a cry out for help,’ alleged intruder’s ex-wife says
  3. Legislators urge Secret Service to reassess White House security
  4. Officials say too many in the 18-64 age range skip flu vaccination
  5. U.S. confident it’ll have allies for airstrikes against ISIS
  6. Mentally ill Pa. man might go free in 9/11 scare
  7. 32 structures destroyed in California’s King wildfire
  8. Beads in beauty products called toxin
  9. March around the world seek to put focus on climate change
  10. Backers seek expansion of Till civil rights death law
  11. Man seen with UVa student faces driving charge
Subscribe today! Click here for our subscription offers.