FedEx Sets Three-Year $1.7 Billion Profit Growth Plan
FedEx Corp. set a goal to boost profit by $1.7 billion within three years, by cutting costs, as customers shift away from overnight shipments to slower and cheaper deliveries, Bloomberg reported.
FedEx sees the move of some customers to ground, freight and even ocean shipping as permanent and not a temporary change because of a slowing economy, Bloomberg reported.
The company plans on having fewer flight hours and retiring almost 5,000 older vehicles, CEO Fred Smith said to investors recently.
FedEx expects to achieve a large portion of the cost-saving benefits by fiscal year 2015, with most reductions coming from the FedEx Express and FedEx Services divisions, Smith said.
FedEx Corp. is ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
