FedEx to Boost Capital Investment by 20%
FedEx Corp. will boost its plant and equipment investment by 15% to 20% in fiscal 2008 to expand in China, add new jets and add new stores to its FedEx Kinko's chain , Bloomberg reported.
Chief Executive Officer Fred Smith and Chief Financial Officer Alan Graf gave few details at a FedEx investor conference held Wednesday at its Memphis, Tenn., headquarters, Bloomberg said.
The company earmarked $3.2 billion for capital spending this year, so a 20% increase would amount to $640 million.
FedEx is seeking growth overseas, particularly in China, where it will start overnight delivery between 19 Chinese cities in May, Bloomberg reported.
FedEx may miss its target of 10% annual earnings growth this year because of the capital investments and a slowing U.S. economy, the company said in reporting its fiscal third-quarter earnings last week.
The company will expand its FedEx Kinko’s chain by 300 stores in 2008 because it is attracting small and medium-sized businesses, Smith said. The chain has about 1,500 stores and is adding 200 this year.
FedEx is ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
