FedEx Loses $2 Billion in Profit
FedEx performed above Wall Street’s expectations in their latest quarterly results, but still reported a loss of nearly $2 billion. While ground and freight shipping performed well, the company’s express business suffered.
FedEx reported their adjusted profit to be $5.01 per share. This is down from $5.91 the previous year, but still better than expected. According to the Associated Press, “the average estimate of 11 analysts was $4.81 per share.”
The loss has been attributed to weaknesses in the global economy and current trade tensions between the U.S. and China. Despite no sign that these pressures will ease, the company remains cautiously optimistic about the 2020 fiscal year. FedEx predicts that operating income for 2020 “is expected to increase due to higher revenues.”
USPS Runs Holiday Season Advertisement… in the Summer
Despite being months away from the holiday season, USPS is already running advertisements offering to help merchants during the busiest season of the year.
The advertisement says “This year, tackle your busiest shipping days with USPS. We delivered 955 million packages and handled 36.3 million returns last holiday season alone. Let us help your business with yours.”
According to the USPS blog, the company has projected that the 2019 holiday seasons will bring a 4.4% increase in packages and a 19.6% increase in returns compared to 2018. Despite this development, there is an expected -2.6% decrease in the number of pieces of mail being shipped.
Overall, USPS is expecting to ship nearly 16 billion packages and pieces of mail during the 2019 holiday season. Merchants should heed the advice of USPS and begin to shop around and prepare for the busy season ahead.