(Reuters) - FedEx Corp said on Friday it would pull $1.5 billion from a credit line and slash CEO pay as stay-at-home orders aimed at stemming the spread of the coronavirus in the United States and Europe hammer demand for its lucrative express services. The Memphis-based delivery company said it would tap debt markets to bolster reserves as the pandemic slams its higher-profit business-to-business shipments, while driving up demand for low-margin home deliveries. The global health crisis has compounded woes at FedEx, which already was struggling to integrate TNT Express, grappling with the high cost of launching Sunday home delivery, and compensating for the loss of Amazon.com Inc as a customer. Shares in FedEx fell 6.7% to $108.82 in midday trading. FedEx and larger rival United Parcel Service have asked the U.S. Treasury to move quickly to release billions of dollars in government grants and loans to support the sector.

Source: International New York Times April 03, 2020 14:44 UTC