(MENAFN) FedEx Corp unveiled plans to deepen costs cuts at its underperforming express air freight and services divisions, as it targets to better its profits at those businesses by USD1.7 billion over the next four years, Reuters reported.
CEO Fred Smith expected to start picking up the fruits of this strategy next year, adding that the profit improvements, which will be mainly due to cost cuts, should all come by the end of fiscal 2016, with a significant portion of that coming from the year before.
Smith also told investors he intended to raise dividends in the years to come.
The total does not include expected profit gains at the company's freight and ground divisions.
FedEx reported a decline in its fiscal first quarter profits, impacted by the poor performance from FedEx's express segment.
The segment's operating earnings fell 28 percent; with US package deliveries were down 5 percent.
FedEx, founded in 1971 by Fred Smith, is the world's second largest packet delivery firm and competes with larger rival United Parcel Service Inc (UPS).