Mexican Police Chief DECAPITATED By Drug Cartel

11 of 16 Bodies Dumped By Cartel At Side Of Road In Tijanana

MONTERREY, Mexico — The decapitated body of the police chief of a northern Mexico town and the body of his brother were found inside the chief’s patrol truck Friday, authorities said. Hours earlier, gunmen killed a deputy police chief and his bodyguard in another part of Mexico’s north.

The body of Heriberto Cerda, the police chief in Agualeguas, was found on the bed of a patrol pickup truck, which was left on a dirt road in the nearby town of General Trevino. His head was on his lap, said a spokesman for Nuevo Leon state prosecutors who spoke on condition of anonymity because he was not authorized to discuss the case.

The body of the chief’s brother, Jesus Cerda, was found inside the truck, the official said. He didn’t say how Jesus Cerda was killed.

Nuevo Leon state secretary general Javier Trevino told reporters that Cerda and his brother had been reported missing Thursday.

The windshield and driver’s door of the patrol car had “C.D.G.,” an acronym for the Gulf drug cartel, written in blood, photos showed.

Drug Cartel Violence. Young Woman Murdered - Mutilated By Cartel

The border state of Nuevo Leon, where Agualeguas and General Trevino are located, has seen an upsurge in violence that authorities say is the result of a turf battle between the Gulf cartel and the Zetas, the cartel’s former hit men.

The slayings came a day after Mexican marines on patrol in the Nuevo Leon town of Cerralvo came under fire after ordering a convoy of gunmen traveling in six vehicles to stop. Six of the assailants were killed.

Nearly 18,000 people have died in drug-related violence since President Felipe Calderon launched an assault on cartels after taking office in December 2006.

In the northern state of Sonora, gunmen in a pickup truck fatally shot the deputy police chief and his bodyguard in the city of Nogales, which sits across the border from the Arizona city of the same name, authorities said Friday.

Mexican Media Defenseless Against Drug Cartel Violence: Another Reporter Assassinated By Drug Cartels

Newspaper: Mexican Media Defenseless Against Drug Cartels

The body of photojournalist Luis Carlos Santiago, bottom, who works for Diario de Juarez newspaper, lies in his car

CIUDAD JUAREZ, Mexico -Mexican journalists are defenseless against cartel attacks that the government seems incapable of stopping, the main newspaper in this drug war-torn city said Thursday in a front-page editorial inspired by the killing of one its photographers.

Violence, meanwhile, continued in Ciudad Juarez: Gunmen burst into a bar and killed seven men and a woman, said Arturo Sandoval, a spokesman for the Chihuahua state attorney general’s office. One woman was injured.
El Diario de Juarez said journalists have nowhere to turn for protection because of the inability of Mexican security forces to solve most attacks on the media.
“In a country where authorities have proven their incompetence, where can we ask for justice? Who can we complain to for the dangers that journalists face every day?” the newspaper said in its editorial.
Photographer Luis Carlos Santiago, 21, was gunned down in his car Wednesday. Another photographer, Carlos Sanchez, was seriously wounded.

Crime scene investigators remove the body of photojournalist Luis Carlos Santiago, who works for Diario de Juarez newspaper

The Interior Department condemned the attack and promised that investigators would do everything in their power to find those responsible.
Santiago was the second El Diario journalist slain since a turf war erupted two years ago between the Juarez and Sinaloa drug cartels in this city across from El Paso, Texas.
Crime reporter Armando Rodriguez was shot dead in front of his home in 2008, and the next year a federal agent who was investigating his death was killed.
The Committee to Protect Journalists, a New York-based watchdog group, said in a recent report that at least 22 Mexican journalists have been killed since December 2006, when President Felipe Calderon intensified a crackdown on drug cartels by deploying tens of thousands of troops and federal police across the country.

El Diario de Juarez is not one of them.
“The truth is, there is nothing we can do but keep reporting while feeling totally defenseless,” the editorial said.
The fighting in Ciudad Juarez has made it of the most dangerous cities in the world, with more than 4,000 people killed in the past two years.

The Body Of Reporter Armando Rodriguez Being Removed From His Car

Reporter Armando Rodriguez

Several Mexican newspapers have stopped reporting on drug-gang violence because

Reporter Armando Rodriguez - Protesting Violence Against Reporters Prior To His Death

their journalists were attacked.

Mexican Drug Cartel Violence: Mexican Marines arrest presumed leader of Beltran Leyva Cartel – Sergio Villarreal Barragan taken into custody

Sergio Villarreal Barragan captured in Sunday raid officials say

Mexican marines captured Sergio Villarreal Barragan, a presumed leader of the embattled Beltran Leyva cartel who appears on a list of the country’s most-wanted fugitives, in a raid Sunday in the central state of Puebla, officials said.

The presumed capo known as “El Grande” did not put up any resistance when he was arrested along with two alleged accomplices, a Navy official told The Associated Press. The official, who spoke on condition of anonymity in line with department policy, said federal officials would announce the capture shortly.

Mr. Villarreal appears on a 2009 Attorney General’s Office list of Mexico’s most-wanted drug traffickers and has a reward of just over $2-million for his capture.

He is listed as one of the remaining leaders of the Beltran Leyva cartel, whose top capo, Arturo Beltran Leyva, was killed in December in a raid by marines outside Mexico City.

Drug Cratel Violence. Young Woman Murdered & Mutilated By Cartel

Mr. Villarreal’s capture comes about two weeks after the arrest of Edgar Valdez Villarreal, or “The Barbie,” another alleged capo linked to the Beltran Leyvas.

The once-powerful Beltran Leyva cartel split following the death of Arturo — known as the “Boss of Bosses” — which launched a brutal war for control of the gang involving mass execution and beheadings in once-peaceful parts of central Mexico. The fight pitted brother Hector Beltran Leyva and Villarreal against a faction led by Edgar Valdez Villarreal. Hector Beltran Leyva remains at large.

Mr. Villarreal’s capture is the fourth major blow delivered to drug cartels by Mexico’s government in the past year. First came the death of Arturo Beltran Leyva on Dec. 16, 2009, then soldiers killed the Sinaloa cartel’s No. 3 capo, Ignacio “Nacho” Coronel, on July 29. And on Aug. 30 federal police announced the capture of “The Barbie.”

Drug Cartel Victims - Decapitated Bodies Dumped in Plaza

More than 28,000 people have been killed in Mexico since December 2006, when President Felipe Calderon launched a military offensive against the cartels soon after taking office.

In the central state of Morelos, police discovered nine bodies in clandestine graves Saturday in the same area where four more were recently found.

The Public Safety Department said in a separate statement that all 13 victims were believed to have been killed on the orders of “The Barbie” in his battle for control of the cartel.

Also Sunday, the military announced that it filed charges against four troops for the Sept. 5 shooting deaths of a man and his 15-year-old son along the highway linking the northern city of Monterrey to Laredo, Texas.

Authorities have said soldiers opened fire on the family vehicle when it failed to stop at a checkpoint, though relatives who were also in the car say they were shot at after they passed a military convoy.

The mother and wife of the two victims was also wounded in the shooting.

Cartel Violence - Decapitated Head Left in Plaza

A captain, a corporal and two infantrymen are in custody in military prison and have been charged with homicide, the Defence Department said in a statement.

Mexico’s military was already under scrutiny for this year’s killings of two brothers, ages 5 and 9, on a highway in Tamaulipas, a state bordering Nuevo Leon.

The National Human Rights Commission has accused soldiers of shooting the children and altering the scene to try to pin the deaths on drug cartel gunmen.

The army denies the allegations and says the boys were killed in the crossfire of a shootout between soldiers and suspected traffickers.

The scandal renewed demands from activists that civilian authorities, not the army, investigate human rights cases involving the military.

http://www.theglobeandmail.com/news/world/americas/mexican-marines-arrest-presumed-leader-of-beltran-leyva-cartel/article1704715/?cmpid=rss1

Imam Feisal Addul Rauf Complies With NJ Judge’s Order – Documents Concerning Tenement Building Delivered To Court

Union City imam landlord complies with court order, gives papers on repairs to city officials

The attorney representing the imam at the center of the controversial proposal to build a mosque and cultural center near Ground Zero complied with a judge’s order yesterday to furnish proof to Union City officials that he is addressing tenant complaints in a building he owns here, according to The Jersey Journal.

City attorneys are reviewing hundreds of pages of documents the attorney for Feisal Addul Rauf turned over to the city yesterday regarding complaints at 2206 Central Ave., a 16-unit building where tenants have complained about issues ranging from a lack of heat to a bedbug infestation.

The city filed a lawsuit over the complaints against Rauf on Monday and, at a court hearing in Jersey City on Wednesday, Superior Court Judge Thomas Olivieri instructed Tomas Espinosa, Rauf’s attorney, to furnish the city proof by 4 p.m. yesterday that the issues raised by tenants, including a non-functioning fire-alarm system, was being addressed.

The next hearing in the case in scheduled for Sept. 23.

Albiez couldn’t say yesterday what problems the documents showed Rauf was addressing at the multi-family building.

Union City is seeking to put the building into custodial receivership, which would make an independent entity responsible for collecting rent and maintaining the building.

Read the full story in today’s Jersey Journal.

http://www.nj.com/hudson/index.ssf/2010/09/union_city_imam_landlord_compl.html

Kelly: Imam Feisal Abdul Rauf accused of more code violations on Union City building

By MIKE KELLY
RECORD COLUMNIST
A funny thing happened Monday as the Muslim cleric behind the Islamic center near Ground Zero basked in the glow of a diplomatically polite forum at the Council on Foreign Relations in Manhattan.

Back in New Jersey, Imam Feisal Abdul Rauf was taken to court.

Union City officials say they are so fed up with what they call Rauf’s foot-dragging to repair dangerous code violations at a low-income apartment building that they want a judge to step in and appoint a special “custodial receiver” to run the place.

It was a day of dueling realities – and the surreal mystery about Rauf and who he really is.

Rauf, who lives in North Bergen, may fancy himself as a spiritual leader who dreams of building bridges between religions with a proposed $100 million Islamic center two blocks north of Ground Zero. But his slummy apartment building on Central Avenue in Union City is such a fire trap that the police department has now assigned cops to stand guard round-the-clock until Rauf fixes the fire alarms.

“Blessed are the peacemakers,” said Rauf, speaking in a soft voice inside the Council’s plush Park Avenue auditorium to an audience that included former National Security Council staffer Richard Haass and Ted Sorensen, the former speech writer for President John F. Kennedy.

On Central Avenue in Union City, Mayor Brian Stack had a decidedly different description for Rauf:

“He’s a slumlord,” Stack said.

As The Record reported last month, Rauf’s 16-unit Central Avenue building has been targeted with dozens of tenant complaints, from rats and bed bugs to broken lights and leaks.

But in recent days the problems at the building appear to have worsened.

Last Wednesday, as Rauf granted his first interview in months to CNN, Union City officials slapped him with 17 new code violations on the Central Avenue apartments. The city accused Rauf of not only failing to fix a variety of nagging problems but of not being responsive – or available for calls.

“We reached the end of our rope,” said Stack’s chief of staff, Mark Albiez. “There is a lack of responsibility.”

Then, on Friday, on the eve of the anniversary of the 9/11 attacks, Union City officials rushed again to Rauf’s building. PSE&G had shut off the electricity in the hallways. The reason: Rauf failed to pay a bill of almost $5,000, Stack said.

Not only were the hallways dark, but the electric-powered smoke detectors and fire alarms were not working. In other words, the building was now a fire trap.

When Union City officials persuaded PSE&G to restore electricity, they discovered yet another code violation – the fire alarms were not working anyway, even with electricity.

So beginning Friday at 4 p.m., a Union City police officer has been assigned to sit in a car outside Rauf’s building so he can pound on tenants’ doors and guide them to safety in case a fire breaks out.

The city promises to send Rauf the bill – roughly $1,500 a day, said Union City police Capt. Richard Molinari.

“I’m sure it’s a lot cheaper to have your alarms updated,” said Molinari.

Molinari’s words are one of the more profound understatements about Rauf and his strange habit of ignoring poor tenants while he manages to find time to rub shoulders with religious and political big wigs. But those words also frame a perplexing question about Rauf: How could a man who wants to do so much good behave so badly as a landlord?

Rauf did not respond to a request for comment at his office on Manhattan’s Upper West Side. Reached on her cellphone, Rauf’s wife, Daisy Khan, who is also a partner in his real estate ventures, said, “We’re resolving everything.”

Really? Khan said she was unaware that Union City had filed a lawsuit on Monday in Hudson County, asking for a judge to name a custodial receiver to manage the Central Avenue apartment building.

“Defendants are clearly not operating the premises in a fiscally, socially and legally responsible manner,” wrote Union City attorney Christine Vanek in a brief accompanying the lawsuit.    

As Vanek was filing the lawsuit, Rauf did not even mention his slum problems as he spoke and answered questions at the Council on Foreign Relations. Indeed, what was curious about him was how he twisted his own reality.

“I am a typical New Yorker,” he began, not mentioning that he lives in a two-story home in North Bergen.

Then, when listing his occupations, Rauf mentioned he had been a “high school teacher, a salesman of industrial products and a struggling writer” – all true. But there was a major omission – that he has spent most of the last two decades as a real estate developer who, records show, was continually facing financial problems.

Was he being deceptive or just caught up in the hubris of the moment? Who knows?

“Let me begin by telling you my story,” Rauf told his Council audience, though he avoided any specifics about on-going negotiations end the dispute over his proposed Islamic Center.

Back in Union City, Yonaira Arias, who lives with her two sons and her mother in an apartment at Rauf’s Central Avenue building, said she was tired of stories – and promises and the talk about an Islamic Center. She just wants someone to plug the leaks in her ceiling

“Look at this,” Arias said, pointing to a water stain on the ceiling of her living room.

“And look at this,” she added, pointing to another leak in the bathroom.

“I heard he wants to spend $100 million in New York on his center,” Arias said as she gazed at a television that had been damaged by water. She turned and looked up again at the ceiling leak.

“He won’t fix anything here,” she said.

But Feisal Abdul Rauf wants to fix religious problems.

How nice.

http://www.northjersey.com/news/opinions/091310_Imam_Feisal_Abdul_Rauf_faces_code_violations_on_Union_City_building.html

Pope Benedict’s Visit To Britian: Five Algerians Arrested By Scotland Yard – Threat To Pope Alleged

A school-girl takes a photograph of Pope Benedict XVI with her phone at at St Mary's University College

The five Algerian men arrested Friday over a potential plot to harm the pope worked as cleaners in London and were about to start work on streets near where the Pontiff was due later in the day.

Sky News reported that the men were contractors for the environmental services company Veolia, and were detained at the company’s headquarters in the Westminster area of the British capital.

The men were about to leave the headquarters to start their day shift when police swooped.

Dr. Leith Penny, Westminster City Council’s Director for City Management, confirmed that the men worked for Veolia Environmental Services, which employ 650 “on-street staff to keep Westminster’s streets clean and free from rubbish.”

She added: “Veolia and Westminster City Council work closely with the relevant authorities to constantly ensure that all the people working on their behalf are subject to right to work checks as prescribed by the Home Office to assess their eligibility to work in the country.”

She continued; “We are confident that these checks are robust and we will continue to work with the police and other authorities during this investigation.”

Earlier Friday, a spokesman for Pope Benedict XVI said the Pontiff was “calm” and “happy” following the arrests.

“We are totally calm. The pope is happy with the trip,” Father Federico Lombardi, director of the Holy See press office, told reporters.

He continued, “What we know is not much more than you know, but we can say that we are properly confident in the work of the police and Scotland Yard. The police have already said that there is no need to change the program of the pope.”

The men — aged 26, 27, 36, 40 and 50 — were detained by Scotland Yard detectives about 5.45am local time at a business address in central London “on suspicion of the commission, preparation or instigation of acts of terrorism.”

Sky News reported that the detained men were Arabs, and more specifically of Algerian origin.

The Catholic Church in the U.K. quickly responded to the arrests, saying that the church also had “absolute confidence” in the security operation to protect the pope.

“We have absolute confidence in the security operation to protect both the Pope and the public,” a spokesperson from the Catholic Bishops’ Conference of England and Wales said in a statement.

The statement continued, “The Pope is enjoying a wonderful visit, warmly welcomed wherever he goes. This morning [Friday] he has met with school children at the ‘Big Assembly’ and faith leaders from across the country at the multi faith event.”

70.000 Greet Pope Benedict In England

The five men were taken to a central London police station to be interviewed by detectives from the Metropolitan Police Service (MPS) Counter Terrorism Command.

Police were searching the business premises Friday, as well as residential premises in north and east London. Police said initial searches failed to uncover any hazardous items.

“Today’s [Friday’s] arrests were made after police received information. Following initial inquiries by detectives a decision was made to arrest the five men,” the Scotland Yard statement continued.

The arrests led to a review of the Pope’s security arrangements, but police were “satisfied that our current policing plan remains appropriate.”

Anti-terror police carried out a security sweep of Lambeth Palace — where the pope was due to meet Dr. Rowan Williams, the head of the Church of England later.

The Pope’s itinerary was not changed and there was no change to the U.K. terror threat level.

Pope Benedict's Outdoor Mass in London

The security operation to protect the Pope during his trip was expected to cost about £1.5 million ($2.3 million).

London’s Metropolitan Police Fixated Threat Assessment Center (FTAC) has been monitoring people who they believe could threaten the pope’s safety, including people suffering from mental instability.

Officers coordinated with the Vatican to discuss security arrangements for the pope’s visit.

The task was complicated by the Pontiff’s varied itinerary, which includes many sites around the U.K.

http://www.nypost.com/p/news/international/five_men_arrested_in_uk_over_potential_IHngNBBwtoc3AsqORXkSXI

Five Street Cleaners Held Over ‘Pope Plot’

Five street cleaners have been arrested over a potential threat to the Pope, Sky News sources say.

Armed counter-terror officers swooped on the central London agency to which they were registered in the early hours of the morning.

The suspects, who are aged 26, 27, 36, 40 and 50, are being held and questioned under the Terrorism Act 2000.

Crowd listens to Susan Boyle while they await the arrival of Pope Benedict

The firm where the arrests were made is now being searched, as well as homes in north and east London.

Sky News crime correspondent Martin Brunt said he understood the men were North Africans employed by the agency to work for Westminster City Council.

He said they had been about to start a day shift that would have included cleaning streets around the House of Commons, where the Pope is due to speak, when they were arrested.

Brunt said: “I was at a briefing last week around the whole issue of the Pope’s security and the point was made then that there was no known threat or intelligence to suggest a plot against the Pope.

“What the police are dealing with today is something that has cropped up in the last 24 hours.”

Dr Leith Penny, Westminster City Council’s director for city management, said: “The UK’s security is obviously of critical importance and can never be taken for granted and so our congratulations must go to the police authorities for their swift action today.

“While police investigations are ongoing and no charges have been brought, we can confirm that the people at the centre of the investigation work for one of our contractors, Veolia Environmental Services, who employ 650 on-street staff to keep Westminster’s streets clean and free from rubbish.

“Veolia and Westminster City Council work closely with the relevant authorities to constantly ensure that all the people working on their behalf are subject to right to work checks as prescribed by the Home Office to assess their eligibility to work in the country.

“We are confident that these checks are robust and we will continue to work with the police and other authorities during this investigation.”

The Pope was told of the arrests this morning, but a spokesman for the Vatican confirmed the itinerary would not change.

Pope Benedict arrives to lead youth prayer vigil

“We are calm, the Pope is happy and we go on with the same joy we have had until now,” he said.

A spokesman for Scotland Yard said: “Initial searches have not uncovered any hazardous items.

“Today’s arrests were made after police received information. Following initial inquiries by detectives, a decision was made to arrest the five men.

“Following today’s arrests the policing arrangements for the Papal visit were reviewed and we are satisfied that our current policing plan remains appropriate.”

A spokesperson for the Catholic Bishops’ Conference of England and Wales said: “We have absolute confidence in the security operation to protect both the Pope and the public.

“The Pope is enjoying a wonderful visit, warmly welcomed wherever he goes.”

http://news.sky.com/skynews/Home/UK-News/Pope-Arrests-Five-Algerian-Street-Cleaners-Held-Over-Potential-Threat-To-Benedict-XVI-Sources-Say/Article/201009315732353?lpos=UK_News_Carousel_Region_0&lid=ARTICLE_15732353_Pope_Arrests%3A_Five_Algerian_Street_Cleane

UPDATE:  A sixth man — a 29-year-old — has been arrested at his home … no other details were immediately available.

Ground Zero Imam Feisal Abdul Rauf – SLUM LORD: NJ Judge Orders Proof Of Repairs

Judge wants imam to prove he’s fixing NJ buildings

JERSEY CITY, N.J. — The imam who wants to build a mosque near New York City’s ground zero has until Thursday afternoon to produce documents that prove he is fixing alleged violations at two apartment buildings he owns in northern New Jersey.  

A judge told a lawyer for Feisal Abdul Rauf during a hearing Wednesday to submit the documents. The hearing was prompted by a complaint filed by Union City, a community just outside the Lincoln Tunnel.

But state Superior Court Judge Thomas Olivieri denied Union City’s request to have a court-appointed monitor oversee the property, which the city says is riddled with serious code violations that haven’t been addressed, in some cases for years.

But the judge said he would revisit the request Sept. 23 after the city has had time to review Rauf’s submissions.

From ABC News: COURT VIDEO – TENEMENT HOUSING VIDEO HERE

http://abclocal.go.com/wabc/video?id=7667714 

Rauf and his wife, Daisy Khan, “have been under a lot of stress,” attorney Tomas Espinosa said after the hearing. “They will prove to be honorable people when the final decisions of the court are made,” he added.

Espinosa said he had not had direct contact with Rauf since the complaint was filed Monday but had been in touch with Khan. Neither attended the hearing, and Rauf did not answer the phone at his home in neighboring North Bergen. He has not commented on the complaint.

The 96-page complaint alleges Rauf failed to fix 12 fire code violations the year before a 2008 fire in one of his buildings, and that instead of repairing the 32-unit building he boarded it up and kept residents from moving back in.

The complaint also details violations in the second, 16-unit building, including bed bugs, improper garbage disposal and broken fire alarms and smoke detectors. The building’s gas and electricity were shut off recently due to unpaid bills and were only turned back on when city officials appealed to the utility company, Union City attorney Christine Vanek said.

The fire alarm system in the building is still faulty, the complaint claims, which has forced the city to pay a police officer to be outside the building at all times on a fire watch.

“Why should the city have to provide the mechanism to safeguard the tenants?” Vanek asked the judge.

Espinosa told Olivieri that a company had been retained to fix some of the problems and had amassed “a big file” of documents showing what work was under way or planned.

Olivieri scolded Espinosa for not producing any of the documents Wednesday. When Espinosa said Rauf had been busy in New York and he’d had trouble meeting with him, the judge replied tartly, “Mr. Espinosa, that’s over the river. You’re acting like it’s another universe. It’s not that difficult.”

http://abclocal.go.com/wabc/story?section=news/local&id=7668770&rss=rss-wabc-article-7668770&utm_source=errythang&utm_medium=twitter

UPDATED HERE: Imam Feisal Addul Rauf Complies With NJ Judge’s Order – Documents Concerning Tenement Building Delivered To Court

Economic Recovery: Profits From Overseas Ops Double Fed Ex 1st Qtr Profit – 1700 American Workers To Be Laid Off

FedEx 1Q profit doubles; will cut 1,700 jobs

FedEx Corp. indicated Thursday that the global economic recovery remains uneven. It touted strength in its international shipping operations while moving to fix the weak spot in its business: its money-losing U.S. trucking business.

FedEx did raise its financial outlook for the full fiscal year after its first-quarter net income doubled. But the projections for the second quarter and full year fell shy of Wall Street expectations, and the stock dropped almost 3 percent in premarket trading.

Growth in international air shipments has been driving FedEx’s results lately. That continued in the first quarter. But the FedEx Freight segment lost money again as demand for large items like refrigerators and other appliances continues to be weak. As it competes with other trucking companies to ship a limited amount of freight, FedEx has been forced to forgo the rate increases that are helping its other segments grow.

FedEx will combine its FedEx Freight and FedEx National less-than-truckload operations on Jan. 30, closing 100 facilities and cutting 1,700 workers. FedEx says the move, along with other cost cuts, will ensure the trucking business is profitable next year.

Less-than-truckload shippers take goods from many different manufacturers and consolidate them into a single truck for delivery.

The move suggests that big companies like FedEx, which is a bellwether for broader economic health, are feeling that the global economy still has a way to go for a full recovery.

The world’s second-largest package delivery company now expects to earn between $1.15 and $1.35 per share for the quarter ending in November, below analysts’ expectations of $1.36 per share.

For the full fiscal year that ends in May, the company now expects net income of $4.80 to $5.25 per share. That’s up from its estimate of $4.60 to $5.20 per share in July but some analysts were forecasting earnings as high as $5.60 per share, according to Thomson Reuters.

The Memphis, Tenn., company earned $380 million, or $1.20 per share in the fiscal first-quarter that ended in August, compared with $181 million, or 58 cents per share a year ago. That’s slightly under the $1.21 per share that Wall Street expected.

The reinstatement of some employee compensation programs, higher pension, medical and aircraft maintenance expenses, and a loss at FedEx Freight countered improvements at its Express and Ground operations.

Revenue rose 18 percent to $9.46 billion.

FedEx shares fell 2.9 percent to $83.45 in premarket trading.

http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b4534970

McAuleys World Comments:

This article is all about what Clinton Labor Secretary Robert Reich would call “The Great Decoupling of Corporate Profits from Jobs”… search for Reich’s article of that name.
Reports of quarterly profits by multinational corporations and a “phantom” recovery in the DJIA is an unreliable indicator of an American economic recovery… the record profits being reported by many DJIA companies have nothing to do with American business operations … Fed Ex being the latest example … There is nothing wrong with Fed Ex or GM posting a profit from overseas operations … the problems arise when the politicos and the press try to claim an “American Recovery” based on business growth in Red China or the Far East … or to claim an American Recovery, that is not only “jobless”, but is based on policies that continue to ship American Jobs and manufacturing capacity overseas ….
Even Clinton’s Labor Secretary Reich noted that $30 billion of the GM “bailout” went to create jobs in Red China before he stated, “GM officials say no American taxpayer money is being used to expand in China. But money is fungible. Because of our generosity, GM can now use the dollars it doesn’t have to spend in the United States meeting its American payrolls and repaying its creditors, for new investments in China.”
Reich went on to say, “GM now sells more cars in China than it does in the US, but makes most of them there. The company now employs 32,000 hourly workers in China. But only 52,000 GM hourly workers remain in the United States – down from 468,000 in 1970.”
My research would indicate that GM now employees 40,000 in China and 48,000 in America. By 2012 GM will employ more people in China than in the US – what are the implications for GM’s pension and medical fund liabilities …
Since Reich’s article was published GM has transferred control of GM-China to the Chinese Government for a 1 time payment of $85 million dollars, shielding any of the GM/China profit from American Taxation …
Profits are not “evil” they are the reason a Company exists … however, quarterly profit announcements are not a reliable indication or “bell weather” of how the US economy has rebounded …
We need to re-examine Governmental policies and stewardship that allows $30 billion dollars of taxpayer money, money intended to “stimulate” the American economy and create American jobs, to be used to expand auto production in China … and then have the Government’s handpicked GM leadership team transfer control of a $30 billion dollar investment for a single $85 million dollar payment from the Chinese Government … GM will sell 2 million cars in China in 2010, GM transferred control of it’s Chinese operations, in perpetuity, for the price of $42.50 per 2010 unit …

Follow

Get every new post delivered to your Inbox.

%d bloggers like this: