newsworthy

FedEx stock battered in global equities selloff

How badly did FedEx Corp. stock get beaten up during the global equities sell-off of Sept. 22?

So badly that David G. Ross, analyst for Stifel, Nicolaus &
Co., wrote in a research note that traders and investors did-
n’t just sell FedEx shares. The market, in his words, “contin-
ued to puke the stock.”
Ross’s depiction was as accurate as it was vivid. The
Memphis-based giant announced before the U.S. market
opened that day that its fiscal first-quarter results had come
in slightly below the company’s expectations. This
announcement compelled some traders, speculators, and
investors to begin selling the company’s stock in droves the
minute they heard the opening bell. At one point during the
trading day, FedEx stock had fallen to $64.55, a decline of
almost $8 a share from the prior day’s close. At the close of
the day, the stock had settled at $66.58. At press time, the
stock was more than $30 a share below its 52-week high of
$98.33 set on July 7.

FedEx stock was hammered because of a surprisingly
subpar performance by the company’s air express division,
which represents close to 60 percent of FedEx’s revenue and
is seen as a proxy for U.S. and global economic activity.
Domestic express volumes fell 3 percent year over year,
while the company’s “international priority” business—
which accounts for nearly one-third of all of FedEx’s rev-
enue—contracted by 4 percent due to a slowdown of air-
freight volumes out of Asia. The sequential (quarter over
quarter) decline of 8. 4 percent in international volumes was
the biggest such drop in at least 10 years, according to Jon
A. Langenfeld, analyst at Robert W. Baird & Co.

The Perfect Fit for Your Supply Chain Needs

Reduce Your DC-to-Store Cost per Trip Rehrig Pacific’s new generation 48" × 40" Nestable Retail Pallet offers superior performance, increased service life and seamless integration. These injection molded plastic pallets provide improved handling, higher load capacity, greater impact resistance and increased load security over other types of molded pallets. Thicker material where it’s needed most Higher strength-to-weight ratio Asset identification options 100% recyclable Contains post-consumer recycled material No loose fasteners or boards and won’t absorb moisture Contact Rehrig today for more information about our comprehensive warranty and Material Buyback Programs.