May the Odds Be Ever in Their Savings: FedEx Cuts Costs Faster Than Peeta Bakes Bread!

Another Day Another District... I Mean Dollar Saved

Alright District 12 gather 'round. It seems FedEx the folks who deliver those surprise packages – you know the ones that aren't parachute delivered bread from a sponsor – have managed to pull a fast one. They've apparently hit their $4 billion cost cutting target. Four. Billion. Seems like more than enough to feed all the districts for a year doesn't it? According to CEO Raj Subramaniam they've done this 'in the face of ongoing headwinds.' Headwinds? Try facing a Gamemaker's engineered forest fire Raj. Now that's a headwind.

The Market's Not Exactly Volunteering as Tribute

Now you'd think saving that kind of dough would make everyone happy right? Wrong. The stock actually dipped about 5%. It seems Wall Street much like President Snow is never truly satisfied. Their profit guidance for the current quarter wasn't up to snuff. Honestly you'd think these people were from the Capitol the way they're so hard to please. "Shares of FedEx have dropped more than 18% year to date." It seems like the odds are not exactly in their favor!

Numbers That Would Make Haymitch Proud (or Confused)

Let's get into the nitty gritty. Earnings per share? $6.07. Revenue? $22.22 billion. They even managed to ship 6% more packages in the US and ground home deliveries are up 10%. Someone's been ordering a lot of parachute cord perhaps? Net income hit $1.65 billion. Not bad FedEx not bad. For the full year their revenue jumped a bit as well. So in a world of complex numbers I guess it isn't always a disadvantage.

Capital Spending: Down More Than My Spirits After Prim's Reaping

Here's where things get interesting. Capital spending is down 22%. Turns out if you don't spend as much you save more. Who knew? "Capital spending as a percentage of revenue hit its lowest level in FedEx history." It's all part of their DRIVE program – because apparently even logistics companies need motivational slogans. They're aiming for another $1 billion in cost cutting reductions next year. I just hope they're not cutting corners on things that actually matter like delivering medicine to District 12… assuming District 12 still exists.

Trade Winds and De Minimis: Capitol Speak for 'We're Not Making as Much as We Want'

Apparently global trade policies are causing a "$170 million headwind" from international exports. That's a lot of money even by Capitol standards. Something to do with taxes on lower value shipments from China to the U.S. Ah yes the good old Capitol always finding ways to make people's lives difficult even in the districts...I mean the shipping industry. What I know is that the trade is definetly unbalanced.

Spinning Off and Saying Goodbye to a Founder

Oh and they're spinning off their Freight division. Because apparently one company delivering packages wasn't complicated enough. But the real kicker? All this news comes right after the death of FedEx's founder Fred Smith. "Fred Smith stepped down as CEO in 2022 and was succeeded by Subramaniam." Let's hope his successor remembers that even in the most cutthroat business there's always room for a little humanity. After all we are still human right?