FedEx Corporation (FDX) Manages Through Tough Times

In other words, for the next few quarters, FedEx Corporation (NYSE:FDX) may have more priority shipment capacity than necessary. Management has admitted that they expected more growth in international priority services than has materialized, and it takes a while to pull out capacity. However, by 2015, when the ongoing restructuring program will be complete, FedEx will be a leaner and more profitable business.

Here at the Fool, we always recommend taking the long-term view. Two years from now, FedEx will have completed the restructuring of its Express segment, which is expected to improve profitability by $1.6 billion-$1.7 billion before tax. This will boost EPS by around $3. Moreover, the FedEx Ground segment — which already produces more than half of the company’s operating income — is expected to continue its strong growth. Based on the long-term outlook, there’s a lot to like about FedEx today.

The article FedEx Manages Through Tough Times originally appeared on and is written by Adam Levine-Weinberg.

Fool contributor Adam Levine-Weinberg owns shares of FedEx. The Motley Fool recommends FedEx.

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