Blog Exposure – FedEx Announces Details of Three Major Programs in Response to US Tax Reform

LONDON, UK / ACCESSWIRE / January 30, 2018 / Active-Investors.com has just released a free research report on FedEx Corp. (NYSE: FDX).If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=FDX as the Company’s latest news hit the wire. On January 26, 2018, the Company announced three major programs following the recently enacted US Tax Cuts and Jobs Act (“Tax Reform”). Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, FedEx most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Details of the Programs

The Company is planning to use more than $200 million to increase the wages of its employees. About two-thirds of the amount will go to hourly team members. The increased pays will start from April 2018 and will advance to the next six months to October 2018. The unused amount from the $200 million will be used to fund increases in performance-based incentive plans for salaried personnel.
FedEx will make a voluntary contribution of $1.5 billion to the FedEx pension plan, to ensure it remains one of the best funded retirement programs in the United States.
The Company will also make an investment of $1.5 billion to expand the FedEx Express hub in Indianapolis over the next seven years, and to modernize the Memphis SuperHub. Additional details about this will be disclosed later in 2018.

As a result of these actions, FedEx did not make any changes to its fiscal 2018 earnings or capital expenditure guidance as issued on December 19, 2017.

Companies Passing Benefits of New Tax Reform Legislation to Employees

Many American companies will share some of the financial benefits from the Tax Reform with their employees. Along with FedEx, other Companies that have been investing back into their employees include Home Depot Inc., Wal-Mart Stores Inc., Starbucks Corp., to name a few.

Home Depot would give its US employees a new one-time cash bonus of up to $1,000 for hourly associates in Q4 2018. Starbucks plans to spend $250 million on new employee benefits, including a pay boost for domestic workers. The Company will increase pay for its 150,000 US hourly and salaried employees in April 2018, following its regular annual raise. Wal-Mart Stores will raise the minimum wage for hourly associates to $11, and the Company is handing out bonuses of up to $1,000 to employees. Walt Disney is giving $1,000 bonuses to 125,000 employees, and spending $50 million to create a new higher education program for workers. AT&T plans to pay a special $1,000 bonus to more than 200,000 of its non-management workers.

About US Tax Cuts and Jobs Act

On 22 December 2017, the President of the United States, Donald Trump, signed the US Tax Cuts and Jobs Act (TCJA). The Act would reform both individual income and corporate income taxes and would move the United States to a territorial system of business taxation. The plan would significantly lower marginal tax rates and the cost of capital, which would lead to a 1.7% increase in GDP over the long-term; 1.5% higher wages; and an additional 339,000 full-time equivalent jobs. The Act allows companies to immediately write off the full value of capital costs, benefit of which will start to phase out in 2023. The Act also permanently lowers the US corporate rate to 21% from 35%.

About FedEx Corp.

Founded in 1973 and headquartered in Memphis, Tennessee, FedEx is an American multinational courier delivery services Company that connects people and possibilities through its worldwide portfolio of shipping, transportation, ecommerce, and business services. The Company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand.

Stock Performance Snapshot

January 29, 2018 – At Monday’s closing bell, FedEx’s stock was marginally down 0.43%, ending the trading session at $267.69.

Volume traded for the day: 1.13 million shares.

Stock performance in the last month – up 7.06%; previous three-month period – up 16.87%; past twelve-month period – up 36.63%; and year-to-date – up 7.27%

After yesterday’s close, FedEx’s market cap was at $71.49 billion.

Price to Earnings (P/E) ratio was at 24.61.

The stock has a dividend yield of 0.75%.

The stock is part of the Services sector, categorized under the Air Delivery & Freight Services industry.

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