Fedex Plunges After Hours, Retraces, After Management Blames Guidance Cut On Snow, Margins

Tyler Durden's picture

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jus_lite_reading's picture

I can't wait until this week's unemployment figures are released. I suspect 480k+ new applications and of course, blamed on the snow.

What excuse will they have come spring?

jmc8888's picture

The same one they had last year, rain.

They did it, which is why I think ZH caught onto the whole snow thing early on.

whatsinaname's picture

everybody is learning the game ?

william the bastard's picture

This spring's fashionable excuse will be the revolution

SheepDog-One's picture

When even Charles Dow's showshine boy is talking about *cntrl alt del* and 'no problem, Ben will POMO it', then you know the game is over. 

I know the game is over right now, 2 weeks ago my niece ran up to the computer and said 'Huh, the Bernank POMO'd and closed it green again huh'? 

 

system failure's picture

So those times when they say, "come wind, rain, or snow," you'll know that shit wont be delivered profitably anymore as a result like it once was in the good old days. That is absurd. How can that be since I was watching WGN news out of Chicago when the FedEx truckers said they never ever closed until the one day that LSD drive was finally shut down due to the weather. Somebody is lying. FedEx had one snow day and the entire quarter went to shit. Well if pregancies happen with that one day so can FedEx. That is an useful analogy.......

Mike7.62's picture

I can guarantee you that FDX had more than one snow day in the last two months. How do I know? I was sitting in the cockpit of one of their jets trying to get deiced on at least four occasions in MEM. Keep in mind that trying to get 110 flights out in a matter of two hours is a major feat in good weather, but when you have to deice/anti ice the same amount of aircraft and then launch them, there is no way that it will happen.

 

The wx WAS a major factor. Hell, two of our major hubs, AFW and IND, were shutdown this month for two days because of ice. Think that doesn't impact the bottom line? Think again. It causes backups throughout the system that cause ripple effect delays once the freight is finally moving again.

 

Fuel costs are a very large part of the cost structure, and increases in that do impact the bottom line. Surcharges for these increases only go so far. Jet A is running right at $2.60/G. Each gallon weighs 6.7 lbs. Average fuel burn is 8000 lb/hr/jet. That equates to 1194 G times $2.60, or close to $3104/hr/jet. Run those costs over 400 aircraft, some flying an hour, some flying 14, and you can see how a nickel increase in fuel costs can definitely impact profitability. That doesn't include mx costs, crew costs such as pay, per diem, hotels, and transpo at destination, some of which are continually shifting in price, especially overseas with FX fluctuations.

 

So yeah, I can guarantee that the wx and increased fuel costs hit the bottom line over the last quarter, and probably will next quarter too.

No One's picture

Allergies. All this weather leads to blooming of flowers, and the pollen will be unexpected.

holmes's picture

Global warming explains it all year round.

jus_lite_reading's picture

Before the French revolution in 1789, the people gave Marie Antoinette the nickname "Madam Deficit," and shortly after TSHTF.

I believe we need to give Ben the nickname, "Dr Deficit" and let history run its course.

 

Cursive's picture

@jus_lite_reading

I believe we need to give Ben the nickname, "Dr Deficit" and let history run its course.

+1

 

Gubbmint Cheese's picture

"Lions... in Africa?"

 

 

Ragnarok's picture

stable fuel prices for the remainder of the quarter.

 

LOL!

101 years and counting's picture

as WTI falls, gasoline and diesel prices keep climbing.  see, chairsatan is able to create inflation, bend over every american on fixed income and screw over the oil producers all at once.

bankers win again.

SheepDog-One's picture

Well as long as their definition of 'stable' includes 'wildly increasing'.

AccreditedEYE's picture

Yeah, this is a strong equity market alright..... LMAO!!!

unwashedmass's picture

 

oh, please? Investors? hello? it was bennie boy's magic hands...cradling another company pivotal to the fantasy....

chrisd's picture

And you thought pro forma adjustments for one-time items during the Tech Bubble were bad? Welcome to the new normal.

jus_lite_reading's picture

What sort of idiots do they have working there?

 

due to loss of revenue and increased expenses resulting from severe winter storms and higher-than-expected fuel prices.

 

Weather can be unpredictable but higher fuel prices are to be expected if they did their DD. Another company, I refuse to do business with.

SheepDog-One's picture

They had no idea fuel prices were set to rise? Everyone else knew.

RockyRacoon's picture

Yeah.   And, damn, snow in winter.  Who could have foreseen that?

StychoKiller's picture

Next on deck...Giant Killer Penguins with shooting tentacles (oops, make that flippers!)

TruthInSunshine's picture

If we could stop the damn snow, maybe we'd dig ourselves out of our economic morass!

And I hate to be an alarmist, but we're probably going to get rain, really hot and humid weather, and maybe some tornadoes and hurricanes this spring and summer.

That won't be good, either!

jus_lite_reading's picture

The poor results at Yahoo will be the result of sunshine in the summer...

This stops now.

jobs1234's picture

I cant wait until they start blaming rain in the spring.

 

Or maybe sunlight in the summer - "Our margins were affected by the fact that the sun came out and it was too hot for people"

101 years and counting's picture

so......as shoppers were trapped inside by the snow, they were unable to shop online because......it was snowing?  um, is it just me, or snow storms keeping people away from the malls should have helped a company like FDX.

 

 

More_sellers_than_buyers's picture

stop the madness please I can't take it anymore... why don't they just print dow 100,000 and tell everyone bite me

AN0NYM0US's picture

With the snow rationale soon to melt away the good news is that Easter is late this year, which will explain away any shortfall for Q1. If only someone could come up with way to  predict when Easter is going to be.

Misean's picture

It was all nice and mathematically scientific under the Ptolomeic models, right until those upstarts like Galileo said the earth revolved around the sun. My epicycles are still fuming over that...

Prof Gulliver's picture

Deleted. The Professor was too hasty on the "save" button.

jobs1234's picture

"or snow storms keeping people away from the malls should have helped a company like FDX."

Rationality doesnt really apply at this point. I would think POMO would target this stock tomorrow to keep it and the trannies up in the air.

AN0NYM0US's picture

March 4, 2010, 2:58 p.m. EST

Shoppers brave snow to warm up February sales Biggest monthly increase in 27 months

http://www.marketwatch.com/story/resurgent-shoppers-boost-monthly-sales-...

Misean's picture

"I would think POMO would target this stock tomorrow to keep it and the trannies up in the air."

Airborn trannies POMO's...my brain just locked up.

StychoKiller's picture

Kinda makes ya wanna stick a cake mixer up yer nose and turn it to "beat", huh?

zebra's picture

enjoy the red candle while it lasts.

whatz that smell's picture

no worries.... just HFT9000 gunning the humans and their puny stop loss orders... it only hurts cause you got nerve endings, meatbags.

curbyourrisk's picture

Just blame it on Bush and get it over with.

centerline's picture

W&R at it again.  Damn those guys.

SuperRay's picture

WTF! the SPY is actually down AH! I guess Bernanke has to take a crap at 4pm...

monkeyfaction's picture

I can see the CNBC headline now:

Stocks fell after hours today on news that Ben Bernanke, chairman of the Federal Reserve, took a shit.  One investor was quoted as saying 'What if it's a wet one and he takes a long time to wipe? This whole ponzi scheme could come crashing down by the time he gets back to his desk'. 

TheGoodDoctor's picture

I can't believe this shit anymore. When will they start to blame global warming? How about the Yankees losing? Cher retiring from performing? The Butterfly Effect? My God. Did someone's homework get eaten by the dog too?