) has launched a new business tool to aid e-commerce customers in
their shipping process. The new system, fedex.com Integration
Manager is a Web-based tool that connects with platforms like
). The seamless connection allows enterprises running multiple
online stores to simplify their selling and shipment process.
With improvements in the market scenario driving more product
offerings, we expect FedEx to register strong earnings momentum
and leverage its long-term expansion opportunities. For calendar
year 2013, the U.S. GDP and industrial production growth is
expected to be 1.9% and 3%, respectively, a positive market
scenario for the company. Further, the new additions to the
product portfolio will likely improve the company's earning power
over the next several years.
FedEx also aims to spread its services across the U.S., Canada
and Mexico and capitalize on potential business opportunities in
NAFTA (North American Free Trade agreement) markets. The company
is mounting its Priority next-day services in its FedEx Freight
segment by opening a new service centre in Rochester, New
The new service centre will cater to 13 U.S. and Canadian
markets dealing in cross border shipments to and from Toronto and
Montreal. In Mexico, the company added two new service centers -
one each in Culiacán and Silao.
These centers will strengthen its freight network in the
northwestern and north central parts of Mexico. Management's
other improvement plans include productivity enhancement with
automation of planning and execution of free load plus pickup and
delivery processes in the Ground segment.
Further, FedEx is boosting its international business with
huge investments to enhance the existing routes and make
strategic acquisitions. The company has allocated 46% of its
fiscal 2013 capital expenditure budget of $3.9 billion for growth
initiatives and 54% for the existing operations.
Currently, FedEx retains a Zacks Rank #3 (Hold).
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