FedEx has plan to keep profit high
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
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Obama promises to veto Republican vote to reverse NLRB rule on unions
- Railroad measure awaits House approval
- Clinton portrait refers to Lewinsky scandal, Philadelphia artist says
- Petraeus, Justice Department reach plea deal on secret info given to mistress
- Case on Obamacare tax subsidies heads to Supreme Court
- Expanded background checks pushed again on gun show, Internet purchases
- Oil spill in Washington river endangers wildlife