Tag: FedEx Corp

FedEx Corp.’s second-quarter profits fell 63 percent from last year because of the costs of a previously announced early retirement and voluntary severance program. Its results missed Wall Street expectations and its shares fell more than 4 percent. The package delivery company reported Wednesday profits of $91 million, or 30 cents per share, for the quarter that ended Nov. 30, down from $245 million, or 81 cents a share, for the same period last year. Excluding the business realignment costs, most of which were taken during the quarter, the earnings totaled $266 million, or 87 cents per share. That fell short of the 90 cents forecast by analysts surveyed by Thomson First Call.

FedEx Corporation today announced that its Board of Directors has authorized the repurchase of up to 5 million shares of the company’s common stock. These shares augment the 3.1 million shares remaining under the existing repurchase authorization. “The authorization of this repurchase program reflects our continued confidence in the long-term growth and profitability of FedEx Corp.,” said Frederick W. Smith, chairman, president and chief executive officer. “FedEx has significantly improved its cash flow in recent years, and we believe that a repurchase of our stock is an excellent use of the company’s cash.” Purchases may be made in the open market and in negotiated or block transactions. FedEx currently has 298 million shares outstanding.