FedEx to Take $885 Million 4Q Charge

FedEx Corp. will report $885 million in costs for its fourth fiscal quarter ended May 31 to write down the value of its Kinko’s Inc. and Watkins Motor Line acquisitions, Bloomberg reported.

The charges are among $1.2 billion in charges for the quarter, with about $100 million of that in cash, the company said in a June 3 regulatory filing.

The total will also include costs for trimming jobs and facilities, as well as lowering the value of some aircraft, Bloomberg reported.

FedEx blamed a decline in the financial performance of the assets acquired from Kinko’s and Watkins “as a result of weak economic conditions.” Its U.S. express volume has dropped for 13 straight quarters.

FedEx bought Kinko’s in February 2004 for $2.4 billion, and purchased Watkins in September 2006 for $780 million.

FedEx is ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.