Posted 12/20/2023, 3:00:00 PM
FedEx Shares Plunge on Gloomy Outlook, Persistent Struggles to Integrate Acquisitions
- FedEx shares fell 10% after disappointing forecast; now sees revenues declining next year
- Struggles attributed to challenges integrating Express, Ground, and other units into single organization
- 2016 $5B acquisition of TNT Express to expand global reach, but integration still not complete
- Despite cost-cutting, Express profit margins remain near trough levels for over a year
- Doubts that FedEx can structurally change Express to reduce high cost structure