FedEx CEO: Economic Recovery Appears 'Slow But Certain'

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; [e-mail]