FedEx expects to take $1.2B in fiscal 4th-qtr charges related to acquisitions, employee costs
By APWednesday, June 3, 2009
FedEx expects to take $1.2B in fiscal 4Q charges
NEW YORK — FedEx says it will book a total of $1.2 billion in charges in its fiscal fourth quarter as writedowns on the value of two acquisitions ended up being bigger than originally anticipated.
The Memphis, Tenn.-based package delivery company said Wednesday it will take a noncash charge of about $900 million related to the 2004 purchase of Kinko’s, now known as FedEx Office. FedEx Corp.’s fiscal fourth quarter ended May 31.
It will also take an extra $90 million in charges related to a September 2006 acquisition of a trucking company and its affiliates.
Total expected charges include these items and previously announced costs including employee severance, facilty cutbacks and aircraft-related charges.
