FedEx
named its new top bean counter, or chief financial officer. Investors are pleased.
Tuesday, logistics giant FedEx (ticker: FDX) announced John Dietrich would replace outgoing CFO Michael Lenz. The transition is orderly and becomes effective on Aug. 1.
Dietrich has an impressive recent resume. He is the former CEO of Atlas Air Worldwide Holdings. Dietrich took over in 2020 when shares of Atlas, a provider of outsourced aviation services, were below $20 apiece. Atlas was sold to private-equity players in 2023 for about $102 a share.
That performance might be why FedEx stock is moving. Shares are up 3.2% at $262.85 in early trading Tuesday. The
S&P 500
and
Dow Jones Industrial Average
are up 0.1% and 0.4%, respectively.
Labor unrest could have something to do with FedEx stock performance too. FedEx rival
United Parcel Service
(UPS) is negotiating a new labor contract with the Teamsters union. Talks broke down recently and a strike could begin as soon as Aug. 1.
FedEx stock is up about 13% since a Teamsters vote authorized to strike in mid-June. UPS stock is up about 3% over the same span. Investors might be expecting a little extra business to flow to FedEx—which has a mostly non-union workforce—as businesses plan for a potential UPS stoppage.
FedEx stock is now up about 52% year to date. Investors have been encouraged by the progress made by the company to reduce costs and increase efficiency. FedEx calls the improvement program DRIVE.
“I am thrilled to be joining the FedEx team to support and advance DRIVE and other important corporate initiatives,” Dietrich said in a news release. “Together, we will deliver on the tremendous opportunity FedEx has to expand margins and improve returns.”
Investors hope he is right.
Write to Al Root at [email protected]
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