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Global trade slowing – FedEx

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.

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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.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.

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