FedEx CEO: Economic Recovery Appears 'Slow But Certain'
September 28 2009 - 11:46AM
Dow Jones News
FedEx Corp. (FDX) Chief Executive Frederick W. Smith reiterated
his view Monday that the overall economy is on the mend, saying a
recovery appears "slow but certain."
Smith, speaking during the shipping giant's annual meeting in
Memphis, Tenn., echoed comments he made two weeks ago when FedEx
posted fiscal first-quarter results.
"The recovery is not a straight line up," he cautioned. But "we
think we have hit bottom, and traffic is climbing up from a
multi-year low."
FedEx also announced during the meeting, which was webcast, that
its investors voted down four shareholder proposals on the
agenda.
A measure that would have made the company hold a special
meeting when 10% or more of its shareholders called for one
garnered the most support. It was backed by investors representing
about 45% of shares cast at the meeting.
Two shareholder proposals that were voted down at last year's
annual meeting - one that would have separated the role of chairman
and CEO, and another that would have allowed investors a
non-binding vote on executive pay - also were defeated. Smith
serves as both chairman and CEO.
The fourth shareholder proposal, calling for FedEx to take a
stand in support of universal health care, was voted down as
well.
Investors approved two company-backed agenda items, the election
of directors and the ratification of its accounting firm.
As for the broad economy, Smith said two weeks ago that he
expects U.S. gross domestic product to grow by 3% in the calendar
third quarter, 4.9% in the fourth quarter and 2.9% next year.
He didn't reiterate those projections during his prepared
comments Monday but echoed the general view that conditions are
improving, albeit slowly.
"All and all, we definitely see the light at the end of the
tunnel" in terms of the economy, he said.
He cited improving data on manufacturing and industrial
production, as well as improvements in the housing and automotive
sectors.
FedEx shares were up about 3%, at $75.67, in recent trading.
-By Bob Sechler, Dow Jones Newswires; 512-394-0285;
bob.sechler@dowjones.com