FedEx did wonders under Raj Subramaniam’s leadership: Report
New Delhi (Best Hindu News): Shares of FedEx Corp, led by Indian-origin CEO Raj Subramaniam, jumped the most in nine months, beating Wall Street’s third-quarter earnings estimates. A Bloomberg report said that after the company boosted its profit outlook, cost-cutting efforts have helped it counter a decline in package volumes.
Saying that its third-quarter profit topped Wall Street’s expectations, FedEx revealed that adjusted earnings per share for this fiscal year will be in the range of $14.60 to $15.20.
Analysts were expecting an average of $13.57, according to estimates compiled by Bloomberg.
“We continue to pursue efficiency improvements aggressively and our cost operations are improving,” Chief Executive Officer Raj Subramaniam said in a statement.
Shares of the Memphis, Tennessee-based company climbed 11 percent as of 9:30 a.m. Friday in New York, and the stock has climbed 18 percent this year, far outpacing the S&P 500 index’s rise.
Subramaniam said last month that the company plans to reduce its US headcount by about 12,000 positions through June 2022. He further added that the company saved $1.2 billion on total enterprise cost year-over-year. The company’s cost-saving plans for the company with annual revenue of 93 billion include cutting flights and grounding planes, reducing office space and making adjustments to ground units in pick-up and delivery.
Subramaniam was appointed as the President and CEO of the US-based multinational transportation and courier delivery giant in 2022.
Born in Thiruvananthapuram, Subramaniam studied at IIT Bombay and has over 30 years of global experience in strategy and operations at FedEx.