FedEx stated that it would take US$1.2 billion in charges in its fiscal fourth quarter, which ended on May 31. The lion’s share of this is an $810 million charge against its retail outlet chain Kinko’s, which it acquired in 2004 and subsequently rebranded FedEx Office.
Read MoreFedEx Corp. reported a loss of USD 0.78 per share for the fourth quarter ended May 31, compared to earnings of USD 1.96 per diluted share a year ago. The quarter’s results include the previously announced charge of USD 891 million (USD 696 million, net of tax, or USD 2.22 per diluted share) related predominately to one-time, non-cash asset impairment charges. These charges were associated with the decision to minimize the use of the Kinko’s trade name and a reduction in the value of the goodwill resulting from the Kinko’s acquisition. Last year’s fourth quarter included a USD 0.06 per diluted share net benefit from a settlement with Airbus related to the A380 aircraft order cancellation. Excluding these items, earnings were USD 1.45 per diluted share in the fourth quarter compared to USD 1.90 per diluted share a year ago.
Full Year Results
FedEx Corp. reported the following consolidated results for the full year:
• Revenue of USD 38.0 billion, up 8 pct from USD 35.2 billion the previous year
• Operating income of USD 2.08 billion, down 37 pct from USD 3.28 billion last year
• Net income of USD 1.13 billion, down 44 pct from last year’s USD 2.02 billion
• Earnings per share of USD 3.60, down 44 pct from USD 6.48 per share a year ago
Capital spending for fiscal 2008 was USD 2.9 billion. Fiscal 2007 results also included costs associated with upfront compensation and benefits under the new pilot labor contract at FedEx Express, which reduced second quarter earnings by approximately USD 0.25 per diluted share. Excluding the above items, earnings were USD 5.83 per diluted share for the year compared to USD 6.67 per diluted share a year ago.
FedEx Corp. announced Brian D. Philips has been promoted to President and Chief Executive Officer of FedEx Kinko’s. Philips, Executive Vice President and Chief Operating Officer of FedEx Kinko’s, has been acting CEO since March 31.
In his role as COO, Philips’ responsibilities included FedEx Kinko’s strategic direction, product and service vision, as well as overseeing the company’s worldwide business performance, including operations, retail sales, marketing and strategy functions.
Philips joined FedEx in October 1993. He served as vice president of U.S. Marketing at FedEx Services, where his responsibilities included retail strategy and marketing, advertising, global brand management, segment marketing, and sponsorship marketing efforts.
Read MoreOffice supply manufacturer Kokuyo Co. has acquired rival Shanghai Xiji Graphics & Character Co. to expand its document services in China to compete with stores run by U.S. firm FedEx Kinko’s.
The acquisition of the Chinese subsidiary of a U.S. copy service firm is estimated to have cost several hundred million yen, although the price has not been disclosed.
The purchase will help Kokuyo quickly extend its reach to European and U.S. corporate customers, in addition to existing Japanese clients in China.
Kokuyo’s main territory for this business is the Shanghai area, but the firm intends to start offering document services in Beijing by 2009.
Read MoreFedEx Corp. announced last 7th March that Ken May has resigned as President and Chief Executive Officer of FedEx Kinkos. Brian Philips, Chief Operating Officer of FedEx Kinkos, will become acting CEO.
May assumed leadership of Dallas-based FedEx Kinkos in January 2006, and his resignation is effective March 31. In a letter today to FedEx Kinkos team members, May said, after an incredible 25-year career with FedEx, the time has come for me to resign and refocus my energy on my family, friends and other personal interests.
Ken has been a true ambassador for our people-first philosophy throughout his career, and he relied on that philosophy to transform the culture at FedEx Kinkos, said T. Michael Glenn, Chief Executive Officer of FedEx Services, which includes the operations of FedEx Kinkos.
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