FedEx sees first signs for H2 turnaround

Discussion in 'Wall St. News' started by ASusilovic, Jul 5, 2009.

  1. FRANKFURT, July 5 (Reuters) - Package delivery giant and U.S. economic bellwether FedEx Corp (FDX.N) is seeing signs for a potential turnaround in the second half as production seemed to be picking up again, German magazine WirtschaftsWoche reported.

    Michael Ducker, in charge of FedEx' international business, told WirtschaftsWoche in an interview to be published on Monday that the downturn was easing and its internationally transported volumes had not fallen further compared with the previous quarter.

    "Production seems to be picking up again worldwide," he was quoted as saying.

    He added that FedEx was aiming to save about $1 billion in its current financial year by, for example, taking out high fuel consuming planes, and by cutting working hours and maintenance costs.

    FedEx was not planning on cancelling any of its plane orders, Ducker told the magazine.

    Like its main rival, United Parcel Service Inc (UPS.N), Memphis, Tennessee-based FedEx is considered a bellwether of U.S. economic activity.