FedEx Wins Over Wall Street With $6 Billion Cuts, Gains on UPS
- Investors have slowly warmed to CEO’s cost-savings plan
- Despite declining package volumes, stock is up 75% this year
Shares of FedEx have soared 75% from a low point a year ago.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
While United Parcel Services Inc. reels from the fallout of a costly labor fight this summer and a tough parcel market, FedEx Corp. is reaping the benefits.
Shares of FedEx have soared 75% from a low point a year ago, as investors eye a $6 billion cost-cutting plan that aims to streamline operations and reduce the number of workers on staff. FedEx’s Wall Street luster has only increased as its main rival confronted a strike threat and eventually agreed to a five-year deal with $30 billion in new money for wage increases, benefits and other perks.