This represents a $0.40 per share, or 53 percent, increase from the previous dividend of $0.75. Memphis, Tennessee-based FedEx said severance payments for between 5,500 and 6,300 layoffs will cost between $300m and $575m through 2023, but that the job cuts will save the company between $275m and $350m a year beginning in 2024. For sellers, the move threatens to throw many of their businesses into a tailspin during the busiest shopping period of the year. Graf said those investments, along with "operational synergies" in Europe, will start to pay off in the company's fiscal 2021. FedEx announced plans in August to end its ground-delivery contract with Amazon, It halted its express U.S. shipping contract with Amazon in June. FedEx is also adding two highly qualified independent directors, Amy Lane and Jim Vena, to its Board effective immediately. FedEx expects costs related to the voluntary buyouts to range from $450 million to $575 million in pre-tax expenditures, according to the filing. Get up-to-the-minute news sent straight to your device. FedEx's revenue hit $22.6 billion and handily topped estimates for $21.5 billion. Employees also may elect a deferred annuity at age 62 if they have at least five years of service at separation. In September, FedEx lowered that range to $19.75 to $21.00 . Durch Klicken auf Alle akzeptieren erklren Sie sich damit einverstanden, dass Yahoo und unsere Partner Ihre personenbezogenen Daten verarbeiten und Technologien wie Cookies nutzen, um personalisierte Anzeigen und Inhalte zu zeigen, zur Messung von Anzeigen und Inhalten, um mehr ber die Zielgruppe zu erfahren sowie fr die Entwicklung von Produkten. FedEx Corp. (FDX) reports fiscal Q3 2021 earnings after Thursday's closing bell, with analysts expecting a profit of $3.23 per-share on $19.9 billion in revenue. The Company also announced that its cash-based long-term incentive (LTI) program for fiscal 2023 through 2025 includes an additional performance metric tied to FedExs total shareholder return (TSR) relative to a broad market index. Our dashboard on FedExs Revenues offers more details on the companys segments. Home; NB88 IFC. While FedEx has seen a massive growth in ground shipments in the current pandemic driven by a rise in demand for e-commerce, the company has also seen increased operating costs, and it makes sense to pass-on the increase to customers, in order to retain or expand its margins. FedEx could play catch-up to UPS in terms of operational metrics, but that's something for the future rather than the here and now. We believe that todays Board enhancements and changes to the executive compensation program position the Company well to deliver on its plan to drive significant value for all stockholders. Eligibility begins when the employee receives either a specific RIF notice of separation, or a more general notice that the employee is likely to be separated through RIF, or for declining a directed reassignment to another commuting area. Reuters. An employee in a bargaining unit covered by a negotiated grievance procedure that does not exclude a RIF must use the negotiated grievance procedure and may not appeal the RIF action to MSPB unless the employee alleges the action was based upon discrimination. We appreciate the collaboration with the D. E. Shaw group, a long-time FedEx stockholder, with whom we have maintained an ongoing and constructive dialogue in reaching this agreement.. There is a 52 weeks of pay lifetime-maximum for severance pay. Coverage under the Federal Long Term Care Insurance Program continues so long as the enrollee continues to pay the premiums. Package-delivery company FedEx Corp (NYSE:FDX) said it will offer voluntary buyout incentives to certain U.S.-based employees to reduce costs as slow economic growth hurts shipping . Throw in the fact that UPS trades at a small discount and has a. We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. While the company has benefited from volume growth over the recent quarters, it will likely see growth in its margins going forward, driven by better pricing. Amy Lane currently serves as a director of NextEra Energy, Inc. and TJX Companies Inc. Ms. Lane was a Managing Director and Group Leader of the Global Retailing Investment Banking Group at Merrill Lynch & Co., Inc., from 1997 until her retirement in 2002. These changes are specifically designed to make management compensation more directly tied to delivering outstanding TSR and long-term value creation. SUBHEAD: The company hasn't yet decided how many positions will be cut. 2023 Endeavor Business Media, LLC. Unspent money in a health care FSA is not refunded, although claims for purchases up to the date of separation still will be paid. FedEx is continuing to see record-breaking, peak-like levels of volume and demand, and in FY 2021, its revenue surged pastthe $80 billion mark with the company predicting sales to eclipse $90. Copyright DVV Media International Ltd All rights reserved. For those not retiring, FEHB coverage can be continued for up to 18 months by paying both the employer and employee share of the premium plus an administrative fee. "The loss of volume from Amazon had a larger negative impact to the second quarter than the first quarter since the FedEx ground contract with Amazon expired in August," Graf said on the call. And second-quarter results released in late July by larger rival United Parcel Service Inc. suggested that the global economic slowdown may be even worse than FedEx anticipated. A leading Middle Eastern airline has chosen ITTS as its leading compliance Sustainability has become the most significant cultural and commercial dilemma facing us Just 60 miles from Los Angeles and centered among major transportation corridors, Ethiopian Airlines has added a freighter service between China and Belgium as Bahrain-based ACMI and charter cargo airline Texel Air has launched operations in second quarter operating income surged 9% year on year, Ethiopian adds new China-Europe freighter service, Fraport tests autonomous tractor for cargo handling, Sponsored: Middle Eastern airline chooses ITTS as the go-to compliance tool, Sponsored: Reducing air cargo carbon emissions through goSAF, Sponsored: SBD International Airport sees opportunity in every direction. Shares in the company, which also reported flat year-over-year adjusted profit for the fiscal second quarter, jumped 6% to $253.00 in after-hours trading. What To Expect From Salesforce Stock In Q4? FedEx Corp. (NYSE:FDX) said Monday it was offering voluntary buyouts to some of its U.S. staff as part of ongoing cost cuts but didn't specify the number of staff affected.The package delivery and logistics company, which competes with United Parcel Service (NYSE:UPS), said most of the eligible employees work for FedEx Express and FedEx Services. Shares of FedEx fell 1.2 percent on Tuesday in the US and have lost 3.9 percent in 2021, compared with a 1.1 percent gain this year in the Standard & Poors 500 index. FedEx (NYSE: FDX) recently announced a revision in surcharges for certain express and ground shipments. FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services. FedEx said those that are close to retirement are also eligible for buyouts. TNT had a large ground delivery business in Europe. The Information Technology Oversight Committee was renamed the Cyber and Technology Oversight Committee to better reflect the committees focus on cyber and technology risk management. We expect FedEx to likely post revenue in-line, and earnings below the street expectations. This time last year, everyone thought Amazon would buy the logistics company to beef up its own. (renews at {{format_dollars}}{{start_price}}{{format_cents}}/month + tax). FedEx's fiscal Q3 2021 earnings per share is expected to be $3.10 per Trefis analysis, 8% below the consensus estimate of $3.36. Looking at the companys performance for the nine month period ending Feb, 2021, total revenue increased 18% to $16.4 billion, primarily led by a large 37% growth in ground shipments revenue, a trend expected to continue in the near term. . Sign up for free newsletters and get more CNBC delivered to your inbox. Its forecast for the first-quarter, which ends this month, fell well below Wall Street expectations. They both possess skills and experience that will be valuable to the Board as we oversee the execution of our strategy and financial objectives. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. as well as Ground segments. It will feature 250 slot machines and a 47-room hotel. Adjusted net income was $1.3 billion, or $4.83 per share, for the quarter ended Nov. 30, unchanged from the year earlier. Going by our FedEx Valuation of $342 per share, based on expected adjusted EPS of $18.01 for fiscal 2021 (fiscal ends in June) and a P/E multiple of 19x, we believe that there is still some room left for growth. However, margins could be impacted in the near term due to integration of smart post package volume into the Ground business. "If you think about all the positive things we've said and that we're seeing, as we get into 2021, we will start lapping Amazon," FedEx CFO Alan B. Graf Jr. said on the company's earnings call Tuesday evening. It predicts global trade will grow even slower than the world's economies - a trend not seen since the recession. In September, FedEx started mentioning Amazon as a competitor, after denying the company posed a threat. Amazon has gradually distanced itself from FedEx and UPS by building up its own delivery network. Back in January, FedEx announced plans up to fire thousands of workers across Europe, stating publicly the completion of the TNT Express integration as a reason. Roughly 1,500 FedEx employees in the U.S. have left or will soon leave the company after accepting voluntary buyouts, the Memphis logistics giant reported Tuesday. (Photo by Budrul Chukrut/SOPA Images/LightRocket via Getty Images). Sie knnen Ihre Einstellungen jederzeit ndern. After Oregon-based retailer Pendleton was open in the neighborhood shopping center for close to 20 years, Pendleton is closing the 1828 Utica Square. Dies geschieht in Ihren Datenschutzeinstellungen. Sign up for our newsletter to keep reading. These cookies are used to deliver our website and content. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. The companys adjusted net margins also improved to 5.7% vs. 3.5% for the prior year period. Our focus is to build on this foundation and continue creating long-term value for our stockholders.. Their skittishness was also felt in the second quarter, where UPS missed analysts' expectations for both earnings and revenue. The US delivery giant says the job cuts will happen over 18 months as it integrates former rival TNT which suffered a costly cyberattack in 2017. Market Indices, Commodities and Regulatory News Headlines copyright Morningstar. We look forward to the Company further detailing its plans to enhance stockholder value at the investor day later this month, said Michael OMary, Managing Director at the D. E. Shaw group. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate; our ability to meet our labor and purchased transportation needs while controlling related costs; a significant data breach or other disruption to our technology infrastructure; the continuing effect of the COVID-19 pandemic; anti-trade measures and additional changes in international trade policies and relations; the effect of any international conflicts or terrorist activities, including as a result of the current conflict between Russia and Ukraine; our ability to successfully implement our business strategy, effectively respond to changes in market dynamics, and achieve the anticipated benefits and associated cost savings of such strategies and actions, including our ability to successfully implement our FedEx Express workforce reduction plan in Europe and to continue to transform and optimize the FedEx Express international business, particularly in Europe; damage to our reputation or loss of brand equity; changes in the business or financial soundness of the U.S. Continues to pay the premiums the ground business mentioning Amazon as a competitor, after denying the company n't. 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