September 23, 2022
- FedEx Announces Significant Increase in Tariffs
- In the June-August quarter recorded a further
attenuation of demand and revenues
- Next January 2 the logistics and express delivery group
FedEx will increase shipping rates by applying a
average rise of +6.9% which will rise to +6.9%-7.9% for the
shipment of larger packages. The announcement of the sensitive
price increase was announced yesterday on the occasion of the
presentation of the results for the first quarter of the year
fiscal 2023, period that ended last August 31 and
which recorded a further slowdown in the growth of
Revenues. Weakening of the increase in turnover that has
explained fedex corp. chairman and chief executive officer Raj
Subramaniam, is a consequence of the contraction in demand:
"We are moving quickly and flexibly - he
specified - to navigate in a difficult operating scenario,
acting on costs and leveraging on skills and aspects
to adapt to the impact of reducing
- In the June-August quarter of this year the group's revenues
amounted to $23.24 billion, an increase of
+5.6% on the same period of fiscal year 2022. More
accentuated the increase in costs, which rose by +7.0% to 22.05 billion
Dollars. Operating profit and net profit decreased
respectively of -14.8% and -21.3% falling to 1.19 billion and 875
millions of dollars.
- FedEx confirmed that the consolidated operating result "is
was adversely affected by volume weakness
overall that has accelerated in the last weeks of the
quarter due to weakening economic scenarios.
Moreover - the company specified - the results were
adversely affected by barriers to FedEx Express services.
The increase in revenues, including the increases generated by surcharges
for fuel - FedEx specified again - they have more
which compensated for the decline in volumes, resulting in an increase in
revenues for the quarter'.
- Relative to the sharpest cost growth, FedEx
confirmed that it had implemented measures to contain them; however
the impact of these initiatives was delayed
compared to the decline in volumes and operating costs remained
high compared to demand.
- FedEx Expects that in the second quarter of the current financial year
tax revenues will remain stable or will undergo a slight increase
revenues of 23.5-24.0 billion dollars are expected
compared to 23.47 billion totaled in the period September-November
of last year.