Telecomunicaciones y tecnología

FedEx profit rises, warns of difficult 2009



    DETROIT (Reuters) - Package delivery giant FedEx Corp on Thursday reported a higher quarterly net profit that was lifted by falling fuel costs and met expectations, but the company gave a grim view of the economy in 2009 and said it was taking action to cut costs.

    "Our financial performance is increasingly being challenged by some of the worst economic conditions in the company's 35-year operating history," Chief Executive Fred Smith said in a statement. "With the decline in shipping trends during our second quarter and the expectation that economic conditions will remain very difficult through calendar 2009, we are taking additional actions necessary to help offset weak demand, protect our business and minimize the loss of jobs."

    The company said it already has a hiring freeze in place and has been reducing staff levels at its FEDEX (FDX.NY)reight and FedEx Office units.

    FedEx said new measures include a 20 percent base salary decrease for CEO Smith, pay cuts of between 7.5 percent and 10 percent for other senior executives as of Jan 1, and the suspension of 401(k) company matching contributions for a minimum of one year as of Feb 1.

    The Memphis, Tennessee-based company, which like main rival United Parcel Service Inc is considered a bellwether of U.S. economic health, reported net income for its fiscal second quarter, ended November 30, of $493 million, or $1.58 per share.

    That compared with the $479 million, or $1.54 per share, the company reported a year earlier.

    Wall Street analysts had on average expected earnings per share of $1.58, according to Reuters Estimates.

    The company reported revenue for the quarter of $9.54 billion, compared with $9.45 billion a year earlier. Analysts expected $9.78 billion.

    FedEx and UPS have seen package volumes hit by the slowing U.S. economy and have both reported that customers have been migrating to cheaper ground delivery services from pricier express services.

    UPS said in November that the current economic environment had made it too difficult to give its usual peak season package volume forecast.

    Deutsche Post AG announced recently that its DHL express unit would end U.S. domestic service on January 30 with the loss of 9,500 jobs, citing the U.S. slowdown and its uphill struggle to compete against FedEx and UPS on their home turf.

    (Reporting by Nick Carey, editing by Steve Orlofsky).