When overnight delivery doesn’t quite cut it

Dec 19, 2019 at 09:04 AM CST
Things haven’t been looking so good at the shipping company FedEx. The company’s earnings last quarter came in well below expectations, with profits down 40% from a year earlier. “We are at the bottom. Our adjusted operating profit decline year-over-year is horrific,” said FedEx Freight CEO John A. Smith on a conference call on Tuesday. FedEx says it’s been struggling with weaker global trade, weaker global manufacturing, and lower volume after its fallout with Amazon, which cut off FedEx’s ground deliveries earlier this year. That performance is a far cry from FedEx’s early days in the 1970s and 1980s, when the company led the industry with fast overnight delivery.

Dec 19, 2019 at 09:04 AM CST

Things haven’t been looking so good at the shipping company FedEx. The company’s earnings last quarter came in well below expectations, with profits down 40% from a year earlier. “We are at the bottom. Our adjusted operating profit decline year-over-year is horrific,” said FedEx Freight CEO John A. Smith on a conference call on Tuesday. FedEx says it’s been struggling with weaker global trade, weaker global manufacturing, and lower volume after its fallout with Amazon, which cut off FedEx’s ground deliveries earlier this year. That performance is a far cry from FedEx’s early days in the 1970s and 1980s, when the company led the industry with fast overnight delivery.