FedEx Corp. Announces quarterly dividend
FedEx Corp. today announced that earnings for the second quarter ending November 30, 2007 are expected to be in the range of USD 1.45 to USD 1.55 per diluted share, compared to the previous forecast of USD 1.60 to USD 1.75. For the full fiscal year, the company now expects earnings of USD 6.40 to USD 6.70 per diluted share, compared to the previous forecast of USD 6.70 to USD 7.10.
“Since we provided earnings guidance for the second quarter in September, our fuel costs have increased more than eight percent, or USD 85 million,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “While we have dynamic fuel surcharges in place, they cannot keep pace in the short-term with rapidly rising fuel prices. In addition, less-than-truckload freight trends in the FedEx Freight segment remain weak, despite economic signs that the decline in U.S. industrial production has hit bottom. We are taking prudent steps to reduce expenses, and are reviewing our capital investment plans for further reductions.”
Separately, the Board of Directors of FedEx Corp. today declared a quarterly cash dividend of USD 0.10 per share on FedEx Corp. common stock. The dividend is payable January 2, 2008 to stockholders of record at the close of business on December 12, 2007.
FedEx will provide additional financial and operating details when the company releases second quarter earnings on December 20, 2007.
FedEx Corp. provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of USD 36 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 280,000 employees and contractors to remain “absolutely, positively” focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit news.fedex.com.
Certain statements in this press release may be considered forward-looking statements, such as statements relating to management’s views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate, new U.S. domestic or international government regulation, the impact from any terrorist activities or international conflicts, our ability to effectively operate, integrate and leverage acquired businesses, the impact of changes in fuel prices and currency exchange rates, our ability to match capacity to shifting volume levels and other factors which can be found in FedEx Corp.’s and its subsidiaries’ press releases and filings with the SEC.
