FedEx Committing More Than $3.2 Billion in Wage Increases, Bonuses, Pension Funding & Expanded U.S. Capital Investment Follow...
January 26 2018 - 09:00AM
Business Wire
FedEx Corporation is announcing three major programs today
following the recently enacted U.S. Tax Cuts and Jobs Act:
1) Over $200 million in increased
compensation, about two-thirds of which will go to hourly team
members by advancing 2018 annual pay increases by six months to
April 1st from the normal October date. The remainder will fund
increases in performance-based incentive plans for salaried
personnel.
2) A voluntary contribution of $1.5 billion
to the FedEx pension plan to ensure it remains one of the best
funded retirement programs in the country.
3) Investing $1.5 billion to significantly
expand the FedEx Express Indianapolis hub over the next seven
years. The Memphis SuperHub will also be modernized and enlarged in
a major program the details of which will be announced later this
spring.
FedEx believes the Tax Cuts and Jobs Act will likely increase
GDP and investment in the United States.
The company has made no change to its fiscal 2018 earnings or
capital expenditure guidance as issued on December 19, 2017, as a
result of these actions.
Corporate Overview
FedEx Corp. (NYSE: FDX) provides customers and businesses
worldwide with a broad portfolio of transportation, e-commerce and
business services. With annual revenues of $62 billion, the company
offers integrated business applications through operating companies
competing collectively and managed collaboratively, under the
respected FedEx brand. Consistently ranked among the world’s most
admired and trusted employers, FedEx inspires its more than 400,000
team members to remain “absolutely, positively” focused on safety,
the highest ethical and professional standards and the needs of
their customers and communities. To learn more about how FedEx
connects people and possibilities around the world, please
visit about.fedex.com.
Forward-Looking
Statements
The additional pension contribution is expected to be funded in
the third quarter of fiscal 2018 through available debt financing
sources.
Certain statements in this press release may be considered
forward-looking statements, such as statements relating to
management’s views with respect to future events and financial
performance. Such forward-looking statements are subject to risks,
uncertainties and other factors which could cause actual results to
differ materially from historical experience or from future results
expressed or implied by such forward-looking statements. Potential
risks and uncertainties include, but are not limited to, economic
conditions in the global markets in which we operate, a significant
data breach or other disruption to our technology infrastructure,
the ongoing impact of the June 27 cyberattack affecting TNT
Express, our ability to successfully integrate the businesses and
operations of FedEx Express and TNT Express in the expected time
frame or at the expected cost, changes in fuel prices or currency
exchange rates, our ability to match capacity to shifting volume
levels, new U.S. domestic or international government regulation,
our ability to effectively operate, integrate and leverage acquired
businesses, our ability to achieve our FedEx Express segment profit
improvement goal, legal challenges or changes related to
owner-operators engaged by FedEx Ground and the drivers providing
services on their behalf, disruptions or modifications in service
by, or changes in the business or financial soundness of, the U.S.
Postal Service, the availability of financing on terms acceptable
to us, the impact from any terrorist activities or international
conflicts, and other factors which can be found in FedEx Corp.’s
and its subsidiaries’ press releases and FedEx Corp.’s filings with
the SEC. Any forward-looking statement speaks only as of the date
on which it is made. We do not undertake or assume any obligation
to update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20180126005307/en/
FedEx Corp.Patrick Fitzgerald, 901-818-7300
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