FedEx first-quarter earnings up 3 pct to 1.58 USD per share; issues FY warning
FedEx Corp reported earnings of 1.58 USD per share for the first quarter, up 3 pct compared to 1.53 a year ago.
The company said revenue was 9.2 bln USD, up 8 pct from 8.55 bln USD the previous year, and operating income was 814 mln USD, up 4 pct from 784 mln USD a year ago.
Net income was 494 mln USD, up 4 pct from last year’s 475 mln USD.
However FedEx said it expects earnings to be 1.60-1.75 USD per share in the second quarter, compared to 1.64 USD a year ago.
‘While the U.S. economy is growing at a moderate pace, recent financial market volatility and high energy costs have increased the uncertainty surrounding the near-term economic outlook, and weakness in the housing sector continues,’ said Alan Graf, FedEx’s chief financial officer. ‘As a result of this weaker than anticipated economic environment, particularly its impact on the LTL freight market, we have reduced our earnings forecast by four percent for the full year.’
For the full year, the company now expects earnings of 6.70-7.10 USD per share. The capital spending forecast is 3.5 bln USD, of which FedEx said approximately 70 pct is targeted for growth. ‘However, management is reviewing the timing of capital outlays, which could result in lower spending for the year.’
