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(Reuters) - FedEx Corp on Tuesday cut its 2019 profit forecast for the second time in three months, sending its shares down more than 5 percent and fueling fresh worries it is losing ground to delivery rivals such as United Parcel Service Inc and Deutsche Post DHL Group. The profit warning and weak quarterly results were another blow to FedEx, which slashed its forecast in December citing a sharp downturn in worldwide trade. The package delivery industry is widely seen as a bellwether for the global economy.
“Slowing international macroeconomic conditions and weaker global trade growth trends continue,” FedEx Chief Financial Officer Alan Graf said in a statement on Tuesday, Executives also blamed the results vintage cufflinks and studs on the cost of launching year-round, six-days-per-week operations at FedEx Ground in the United States and continued weakness in its international Express business, which includes former Dutch delivery company TNT Express, FedEx bought that struggling business in 2016 for $4.8 billion and has had difficulties integrating it into its own network..
FedEx expects integration costs to exceed $1.5 billion and said in a regulatory filing that it will complete a project allowing packages to flow between the FedEx Express and TNT Express networks by the end of 2020, more than four years after acquiring the Dutch delivery company. Adding to those challenges, a 2017 cyberattack on TNT’s European technology systems cost FedEx some $300 million to fix and sent a number of high-value, time-sensitive customers into the arms of stronger operators in Europe.
“It’s cutthroat over there,” said Cathy Morrow Roberson, founder of consulting firm Logistics Trends & Insights, “FedEx Express has some serious problems.”, Germany’s Deutsche Post DHL earlier this month said it saw no noticeable signs of a slowdown on the horizon, adding that its broad vintage cufflinks and studs geographic and operational base would make it resilient even if global economic growth weakened, [L5N20U0TC], Atlanta-based UPS has less international exposure than FedEx and said in January that U.S, results helped buffer the impact of global economic softening, [L3N1ZV4LF]..
FedEx has shaken up management, including at its Express division, offered voluntary buyouts and limited discretionary spending to stem declines. Profit for the fiscal third quarter that included FedEx’s peak holiday shipping and gift return season fell to $797 million, or $3.03 per diluted share, below analysts’ average estimate of $3.11 per share, according to IBES data from Refinitiv. “It looks like UPS had a better holiday season,” said Morrow Roberson, who added that FedEx also pinned weakness in the quarter on costs related to leasing additional vehicles to handle volume spikes.
BRUSSELS (Reuters) - Alphabet’s Google will prompt Android users to choose their preferred browsers and search apps, a senior Google executive said on Tuesday, as the company seeks to allay EU antitrust concerns and ward off fresh sanctions, The vintage cufflinks and studs European Commission last year handed Google a record 4.34 billion euro ($4.9 billion) fine for using the market power of its mobile software to block rivals in areas such as internet browsing, By pre-installing its Chrome browser and Google search app on Android devices, Google had an unfair advantage over its rivals, EU enforcers said..
Google will now try to ensure that Android users are aware of browsers and search engines other than its own services, Kent Walker, senior vice-president of global affairs, said in a blog. “In the coming months, via the Play Store, we’ll start asking users of existing and new Android devices in Europe which browser and search apps they would like to use,” he wrote without providing details. The company, which introduced a licensing fee for device makers to access its app marketplace after the EU sanction, does not plan to scrap the charge.
(Reuters) - Viacom vintage cufflinks and studs Inc said on Tuesday it had begun warning DirecTV’s 24 million subscribers its channels could stop being shown on the AT&T Inc-owned satellite TV service if it fails to reach a new contract by midnight March 22, Viacom, the owner of MTV, Nickelodeon, BET, and Comedy Central, accused AT&T of abusing its powers after buying Time Warner Inc, which owns the Warner Bros Hollywood studios and HBO premium cable network, Amid a wave of media consolidation, these types of conflicts have increased in frequency, In November AT&T-owned HBO stopped being carried on Dish’s satellite television service after failing to reach a new deal and has not returned to the service, AT&T’s DirecTV is a satellite TV rival to Dish..