June 25, 2021
11 11 11 AM
Family hits Boston traffic, baby born inside vehicle on Southeast Expressway
Girard transportation company forced to stop all rides after parts stolen from entire fleet
Audi CEO reveals timetable for brand to become electric-only
Sanders says no to gas taxes, electric vehicle fees to fund infrastructure deal
King County considers whether to repeal bicycle helmet law
2 local residents injured when vehicle overturns in Ozark County
Provision to decriminalize Metro Transit fare violations fails to make it into transportation bill at Legislature
Americans Are Keeping Their Cars Longer, as Vehicle Age Hits 12 Years
Nissan drops Navara pickup in Europe
Arizona police shoot suspect who struck multiple cyclists with vehicle
Latest Post
Family hits Boston traffic, baby born inside vehicle on Southeast Expressway Girard transportation company forced to stop all rides after parts stolen from entire fleet Audi CEO reveals timetable for brand to become electric-only Sanders says no to gas taxes, electric vehicle fees to fund infrastructure deal King County considers whether to repeal bicycle helmet law 2 local residents injured when vehicle overturns in Ozark County Provision to decriminalize Metro Transit fare violations fails to make it into transportation bill at Legislature Americans Are Keeping Their Cars Longer, as Vehicle Age Hits 12 Years Nissan drops Navara pickup in Europe Arizona police shoot suspect who struck multiple cyclists with vehicle

DJT | Dow Jones Transportation Average




FedEx remains in compliance with debt covenants, sees results hurt by increased FedEx Ground demand

FedEx Corp. said Friday that, including the recent proposed debt offering, it expects to remain in compliance with its debt covenants, but indicated there was risk that it may need to amend the covenants if addtional financing is required and results deteriorate further. The package delivery service said that although it has seen increased demand for its FedEx Ground delivery service in the U.S., as shelter-in-place measures in response to the COVID-19 pandemic has boosted demand for e-commerce, the shift in sales mix is expected to hurt margins and operating results. Results have also been impacted by “significantly weaker global economic conditions” as a result of the COVID-19 pandemic. The company’s current debt covenant requires the ratio of debt to consolidated earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) to be no higher than 3.5 to 1.0; as of Februay 29, that ratio was 2.8 to 1.0. after previously announced borrowings and proposed offerings, FedEx expects to remain in compliance with the debt-ratio covenant. “However, if we secure additional financing or experience a deterioration in results of operations that would cause us not to be in compliance with the covenant, we would have to seek to amend this covenant. No assurances can be made that such amendment would be approved by our lenders,” the company said in a statement. Separately, FedEx said it has implemented temporary surcharges on all international shipments, and has temporarily eliminated its money-back guarantee for all delivery services. The stock, which fell 3.7% in morning trading, has lost 25.6% year to date, while the Dow Jones Transportation Average has dropped 32.4% and the Dow Jones Industrial Average has declined 25.7%.






Source Article