11-Oct-2012 8:36 AM

FedEx aiming to improve profitability by USD1.7bn over three years

FedEx announced (09-Oct-2012) programmes targeting improvement in annual profitability of USD1.7 billion over the next three years. The company plans to achieve a significant portion of the benefits by FY2015. The company said a significant portion of the profitability improvement will come from cost reductions at FedEx Express and FedEx Services. FedEx chairman, president and CEO Frederick W Smith said, "We are revamping the Express cost structure through a combination of cost reductions, efficiency improvements, and service repositioning. Our overall strategy is closely tied to effective yield management. The key is striking the right balance between volume growth and yield improvements. With slow economic growth, however, the cost reduction programs...are also essential to achieve our financial goals." [more - original PR]