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FedEx Wins $10.5 Billion Postal Contract

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Sometimes it seems less like FedEx (NYSE: FDX  ) is competing with the U.S. Postal Service, and more like it's depending on USPS to keep its profits going.

On Tuesday, FedEx announced that its FedEx Express subsidiary has signed a seven-year, $10.5 billion contract to haul mail around the country for USPS, extending a current contract that expires in September through late 2020. (That's assuming USPS is still in business in 2020.)

FedEx Express will provide airport-to-airport transportation of USPS Express Mail and Priority Mail within the U.S., continuing an arrangement it's had in place for 12 years now.

FedEx shares reacted positively to the news, rising 1.4% in Wednesday trading to close at $94.46.

Read/Post Comments (4) | Recommend This Article (6)

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  • Report this Comment On April 24, 2013, at 8:25 PM, kkrimmer wrote:

    Moronic GOP forced the USPS to FUTURE FUND RETIREMENT... they don't require that of ANY other Govt or private business. The GOP wants to shut the USPS and let FedEx and UPS take over so the CEOs can make millions more a year.

    I can send a document cross country in 3 days for $5 with the USPS, the same will cost me over $20 with FedEx or UPS.... who's gonna make the $15 profit? The CEOs, that's who.

    50 years ago the CEO to Average worker pay was 30 to 1.... Today it's 400 to 1.

    Report: Firms spent more on CEO pay than taxes

    Twenty-five of the 100 largest U.S. corporations paid their chief executives more than they paid the government in federal income taxes last year, according to a report released Wednesday.

    The nonprofit Institute for Policy Studies says the 25 CEOs averaged $16.7 million in salary and other 2010 compensation. Most of the companies they ran, meanwhile, came out ahead at tax time, collecting tax refunds that averaged $304 million, according to its review of public filings.

    The GOP’s Intellectual Dishonesty Regarding Bush Tax Cuts For The Rich Again

    Republicans say that tax cuts for the wealthy must be extended to protect the economy and small businesses, even though neither would be affected by their lapse.

    The GOP wants to privatize America so the resources and wealth of America are concentrated to only a few. Is that what you want too?

  • Report this Comment On April 24, 2013, at 10:10 PM, emailnodata wrote:

    CEO pay is a function of the 2 degrees of separation existing on the BOD...which causes a "scratch your back if you scratch mine" mentality.

    It's not just C-Suite greed that is harmful: it't the fact these people graft SO much of the company's wealth that they themselves lose the worry of "where's my meal coming from tonight".

    Lean and hungry?? Try obese and gluttonous.

    Sorry, but THIS should be what a C-Suite lineup resemble:






    CJO (chief janitation officer)-2.4 mill. because right now this s##t stinks.

    Don't like this pay range?? Go get your own company, start a news biz to compete.

  • Report this Comment On April 24, 2013, at 10:59 PM, CuChrist wrote:

    Well FedEx will be a good short-term investment.

    @kkrimmer Hmm this is a financial website... not a political ranting site. Go start a blog if thats all your good for...

  • Report this Comment On April 25, 2013, at 7:00 AM, SWFLORIDA1106 wrote:

    As a business owner,I can send Express Mail with the postal service for $18.75 delivery by noon next day,via FEDEX..When I go direct with FEDEX with overnight delivery by noon, it's $45.25...

    Go figure...

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