Why Shares of FedEx Were Up Today
Shares of FedEx (NYSE: FDX) gained nearly 5% on Friday after the shipping giant announced a plan to streamline its operations by having its FedEx Ground division deliver FedEx Express packages. It's a small move, but an important step for a company that has been spending a lot of money in recent years with the promise of that spending eventually translating into greater efficiency and lower operating costs.
FedEx said Friday that beginning in March, Express packages will be delivered by Ground if they are residential deliveries in which Ground can meet the service requirements. The coordination, which will begin in Greensboro, N.C., and will roll out at other markets throughout the year, should mean fewer trucks on the road and better utilization of assets.
Image source: FedEx.
Source Fool.com
