FedEx 4th quarter LOSS

[Browntothebone]

AP
Out of the Gate: FedEx slumps on 4Q loss, outlook
Wednesday June 18, 9:47 am ET
FedEx shares take hit after shipper posts disappointing 4th-quarter loss, guidance
NEW YORK (AP) -- Shares of FedEx declined Wednesday after the package shipping company reported a larger-than-expected quarterly loss and forecast full-year profit below Wall Street expectations.FedEx shares fell $2, or 2.4 percent, to $82.33 in morning trading.
The Memphis, Tenn., shipper said record-high fuel prices and a weaker U.S. economy drove it to a fiscal fourth-quarter loss of $241 million, or 89 cents per share. Excluding one-time items, FedEx said it earned $1.45 per share -- missing analysts' $1.47 per share average forecast by 2 cents.
The company's profit estimates also came in below expectations. FedEx predicted 2009 earnings of between $4.75 per share and $5.27 per share, compared with Wall Street's $5.92 per share forecast.
For the first quarter, the company guided for earnings between 80 cents and $1 per share, well below analysts' projected $1.27 per share.
Shares of FedEx have weakened significantly over the past year, losing nearly a third of their value from a 52-week high of $119.10 last July.

 

[FDXer]

When a company writes off an $891 million charge for the Kinko's name change and only has a loss of $241 million for the quarter--I think that's still pretty good. Without the write off, my math shows a $650 million profit for the quarter.

 

[§kyye Candy]

When a company writes off an $891 million charge for the Kinko's name change and only has a loss of $241 million for the quarter--I think that's still pretty good. Without the write off, my math shows a $650 million profit for the quarter.

Shareholders don't usually see it that way - a loss is a loss. Was that $891M part of the quarterly projection?

 

[Zulu]

Shareholders don't usually see it that way - a loss is a loss. Was that $891M part of the quarterly projection?

For short term shareholders, I agree. Institutional investors, however, should recognize that this is an "administrative" loss, and NOT attributed to the core business. The $891M was not part of the original quarterly projection -- we made $1.45 per share vs. $1.47 projected not counting the charge, so I don't see why anyone is acting surprised.

My big question is why is cost $891 million to change the name of one of our subsidiaries. I offered to paint all the stores and replace the stationary for a cool $500 million, but got turned down .

Z

 

[DornierPilot]

I don't think the $891 million was all related to changing the physical name - alot of it was simply the loss of market value of that division of FedEx. It just reveals that FedEx paid way too much for Kinkos!!

 

[ableone]

As for name changes what's up with FedEx Express?

Federal Express Express?

Why not FedEx (Federal) Express or FedExFedEx?

 

[AV80R]

... Why not FedEx (Federal) Express or FedExFedEx?

Would that be low-cost Fedex? Don't you be givin' any crazy ideas to those management folks...