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FedEx earnings

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So then I will see all of you at 7:45 am at the Agri-Center parking lot - with your hats on??
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Revenues mean jack sh!t. You could have 10 TRILLION in revenue and still go bankrupt if your expenses are greater. You need to look at the income number to figure the % of that to the raise...

So figure $300 mil income a quarter, $1.2 billion annual (just a guess) that puts a $300 mil raise (including Echopapas factor) at 25% of Fedexs income. That aint loose change... It may be achievable, but lets be realistic in what it actually will cost the company in what discretionary spending they have...
 
Spur said:
Revenues mean jack sh!t. You could have 10 TRILLION in revenue and still go bankrupt if your expenses are greater. You need to look at the income number to figure the % of that to the raise...

So figure $300 mil income a quarter, $1.2 billion annual (just a guess) that puts a $300 mil raise (including Echopapas factor) at 25% of Fedexs income. That aint loose change... It may be achievable, but lets be realistic in what it actually will cost the company in what discretionary spending they have...

Spur,

A little Economics 101.

Most cost analysis is done from revenues. Year-to-year or quarter-to-quarter there are non-recurring expenses that may take from income or profit. For example, last year we bought Kinkos for $2 Billion in cash. A non-recurring expense that might have had a slightly negative impact on our profit/income for that specific calander year.

To illustrate my point:

Let's assume you earn $5,000 a month after taxes (Revenue) and you have saved some money and have $75,000 in savings (Cash). You monthly budget is $4,500 (expenses) and hence you are able to save $500 dollars a month (income). This year you decide to give your wife a new Lexus for your anniversary and it costs $50,000. Your income for the year is a negative ($44,000), but you earned $60,000 (revenue) and you still have $31,000 in savings (cash). Do you tell your son you can't afford to pay him an extra $1.00 a week in allowance because you had negative income last year?
 
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klhoard said:
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So then I will see all of you at 7:45 am at the Agri-Center parking lot - with your hats on??
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Coming in from LAX. Rumor has it that during the last ALPA reign at FedEx, they did the same thing during negotiations and Mr Smith was not happy.
 
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And Spur, according to yahoo our gross profit last fiscal year was 9.83 billion. Is less that 3% of GROSS PROFIT asking too much? Especially since we don't have any employee profit sharing plan. But remember our motto "People, Service, Profit"
 
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Econ 101.5,

Gross Profit does not account for operating expenses, which were 7.36 Billion last year.

Gross Profit - Operating Expenses = Operating Income

The Lexus analogy was pretty good, except for the $1 a week part. It would be more like $50 a month (at 1% of Revenues).
 
Either way, I think your point is still vailid, even if we double the amount of cost per employee we are still looking at only 1.2% versus .6%.....they can still afford it.

Of course they can afford it. All the dollars clearly show that it is not about the money. It is about CONTROL.

I just finished reading Confessions of a Union Buster and it was a real eye opener. All of management's actions are very scripted as they have no real incentive to give us a better contract.

I would not be suprised if we go through another peak and are in the same postion a year from now - without a contract.

Just one line dog's 2 cents worth. See you guys on the 26th!!!
 

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