March 9, 2021

Online shipping fuels FedEx growth and more business news

Online shipping fuels FedEx growth

FedEx earned $1.25 billion in its latest quarter, as online shopping remained popular among customers avoiding stores and shipments between businesses improved.

The delivery giant reported Tuesday that it brought in $19.3 billion in revenue during the three months that ended Aug. 31, FedEx’s fiscal first quarter.

The Memphis-based company did not provide an outlook for the full 2021 fiscal year.

“While business demand improved in the first quarter, continued uncertainties cloud our ability to forecast full-year earnings,” said Alan B. Graf, Jr., FedEx’s chief financial officer.

Revenue in its core Express segment grew to $9.65 billion in the quarter, up from $8.95 billion at the same time last year. Its Ground service grew to $7.04 billion in revenue, up from $5.18 billion at the same time last year.

FedEx is raising its shipping rates by 4.9% for its Express, Ground and Home Delivery services and 4.9% to 5.9% for Freight, beginning in January.

It also has said it plans to hire up to 70,000 seasonal workers to handle extra holiday deliveries, a jump from 55,000 last year.


Nissan executive alone is fighting conspiracy

The Japanese government has accused Greg Kelly of helping his former boss at Nissan, Carlos Ghosn, hide tens of millions of dollars of pay from regulators.

But when Kelly appeared in court on the opening day of his trial in Tokyo on Tuesday, nearly two years after the American citizen was lured to Japan and arrested, he faced the charges alone. And proving his innocence in the Japanese judicial system will be no easy task.

Ghosn escaped Japan to Lebanon late last year, fleeing what he described as a rigged justice system that would have never given him a fair hearing. Kelly — who celebrated his 64th birthday in court Tuesday — is now fighting that same system by himself. Prosecutors in Japan enjoy a conviction rate of more than 99%. Kelly’s lawyers say he has not even seen all the evidence yet.

Addressing the court Tuesday morning, Kelly said he was not guilty of the charges against him and that any discussions he had around Ghosn’s pay were premised on being legal and for Nissan’s benefit, according to Japanese news media.

“I was not involved in a criminal conspiracy,” he told the judges as the trial began.

Lawyers for Nissan, which is also on trial for its role in the alleged plan, said it would not contest the charges against it.


Delta avoids layoffs but cuts hours, pay

Delta Air Lines said Tuesday that it will be able to avoid furloughs for flight attendants and ground workers in the U.S. because of buyouts, early retirements and other cost-cutting measures taken over the past several months.

But the airline will extend a 25% cut in hours and total pay for ground workers and many employees at its headquarters through the end of the year. And the Atlanta-based company could still furlough pilots.

The airline has been struggling through a 70% reduction in passenger counts and is burning through $750 million in cash a month.

“Delta will be able to avoid involuntary furloughs for our flight attendants and ground-based frontline employees in the U.S.,” including airport workers, reservations agents, mechanics and flight attendants, Delta CEO Ed Bastian wrote in a memo to employees. But doing that, he said, “requires that we continue to aggressively manage our costs.”

Officers’ salaries are also being cut by 50% through December, and Bastian said he will not take a salary through the end of this year.

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