FedEx Founder Fred Smith Assails Presidential Candidates' Trade Positions
FedEx Corp. chief Fred Smith said June 21 the company is concerned about both presidential candidates’ views on trade, but he hopes it’s only campaign rhetoric.
Asked which issues most concern FedEx in the coming election, the company chairman and president said, “I would say we would have a hard time putting up a list of the things that don’t concern us, given the two candidates’ positions. But obviously we’re concerned about the antitrade rhetoric, a lot of the antibusiness positions, and it’s very worrisome. But hopefully after the election, cooler heads will prevail.”
Smith made the comments during a question-and-answer session after the company reported topping $50 billion in annual revenue for the first time.
FedEx reported adjusted earnings of $3.30 a share for its March-to-May quarter and $10.80 for the year.
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The Memphis-based shipping giant posted $50.4 billion in revenues and an adjusted operating margin of 11.7% in what Smith called "a historic year of significant accomplishments."
Results benefited from a profit improvement program at FedEx Express, e-commerce growth and the net impact of fuel prices, the company said.
FedEx closed its biggest acquisition in history in May, $4.9 billion for Europe's TNT Express, and wrapped up a multiyear push to boost the Express unit's performance by $1.6 billion a year.
FedEx ranks No. 2 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
"Fiscal 2016 was a successful year for FedEx in many ways,” Smith said. "Of particular note was our corporate operating margin improvement. Our May 25 acquisition of TNT Express capped a historic year of significant accomplishments that benefited shareowners, team members and customers, and strongly positions FedEx for long-term profitable growth.”
Analysts had forecast earnings of $3.26 a share for the March-to-May quarter and $10.77 for the fiscal year that ended May 31.
A year ago, FedEx reported adjusted earnings of $2.66 a share for the quarter and $8.95 a share for the year.
FedEx reported adjusted earnings of $3.30 a share for its March-to-May quarter and $10.80 for the year, in line with analysts' expectations.
In his remarks to analysts, Smith seized on protectionist views espoused by both Donald Trump and Hillary Clinton.
“China has been quite mercantilist in its trade policies, but the way to deal with that is to negotiate with China and not to threaten them or take all of the huge benefits of trade and throw them away,” Smith said.
“We have thousands and tens of thousands of highly compensated people working for FedEx in the United States involved in working with trade: pilots, mechanics, customs clearance people, pickup and delivery personnel,” Smith said.
“That’s a story that never gets told when the tragedy of a local plant closing gets put on the TV. I’d be happy to debate the mass benefits of global trade with anyone who wants to do it, but we’re very concerned about the positions of both parties in trade in particular,” Smith added.
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