BNET Dispatch: FedEx, Virgin Atlantic, The Fed, and Oracle
By
Andrew Hines
March 21st, 2007 @ 12:15 pm
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Categories: General
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- FedEx incurred its first decline in profits in more than three years. The express delivery company also alerted investors that it may fall short of its long-term profit target for this year. As FedEx gets deeper into its strategy of becoming integrated within global corporate supply chains, analysts say it will likewise become more vulnerable to macroeconomic fluctuations. Fred Smith, chief executive at FedEx, said that the profit slump is just a healthy transition to a more sustainable growth rate.
- Virgin Atlantic's start-up U.S. airline, Virgin America, won tentative approval yesterday from the U.S. Transportation Department. The approval came with the condition that the new airline ditch Virgin Atlantic's CEO, Fred Reid, and restructure its financing to reduce the influence of non-U.S. citizens. If the company begins operations this summer as planned, it would likely benefit consumers with lower fares and more options while introducing a major competitive threat to existing U.S. carriers.
- The Fed today kept U.S. interest rates unchanged at 5.25 percent, surprising most spectators who had expected the FOMC to raise the cost of credit. The language used in the statement accompanying their decision indicates the officials anticipate substantial risks of a further economic slowdown.
- Oracle, one of the major players in enterprise software, is running full steam ahead with a 35 percent gain in profits last quarter. Oracle has acquired more than 24 companies in the past three years, and the company's ability to manage acquisitions successfully has contributed to their recent performance, says chief executive Larry Ellison. After a shaky second quarter, Oracle looks poised to continue gaining on leading competitors SAP and BAE Systems.
