Global trade slowing – FedEx
Fred Smith, CEO of FedEx, the express parcel and logistics operator, said that over the last 25 years global trade had generally grown at a faster rate than the world economy, but over recent months that process had broken down. “That’s what is really going on – that exports and trade have gone down at a faster rate than GDP”. Although Fed Ex announced its revenue for the three months to 31 August 2012 was up 3% to $10.8 billion, it guided down its net earnings for the year to 31 May 2013 to around $6.40 per share. At the current $87, FedEx is on a prospective PE of 13.6X.
Chief Executive Officer of Montgomery Investment Management, David Buckland has over 30 years of industry experience. David is a deeply knowledgeable and highly experienced financial services executive. Prior to joining Montgomery in 2012, David was CEO and Executive Director of Hunter Hall for 11 years, as well as a Director at JP Morgan in Sydney and London for eight years.
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