Tag: FedEx

FedEx Corp. today reported earnings of USD 1.58 per diluted share for the first quarter ended August 31, compared to USD 1.53 per diluted share a year ago.

FedEx increased its revenue and earnings against the backdrop of a sluggish U.S. economy, said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. Outside of the United States, the economy is generally solid, contributing to the growth in our international express shipments. I continue to believe that FedEx will, over the long-term, reap the rewards of our strategy of investing in key growth markets and strengthening and expanding our worldwide networks.

First Quarter Results

FedEx Corp. reported the following consolidated results for the first quarter:

Revenue of USD 9.20 billion, up 8pct from USD 8.55 billion the previous year

Operating income of USD 814 million, up 4 pct from USD 784 million a year ago

Operating margin of 8.8 pct, down from 9.2 pct the previous year

Net income of USD 494 million, up 4 pct from last years USD 475 million

While operating margin improved in the FedEx Express and FedEx Ground segments, consolidated margin declined due to a lower margin year over year at FedEx Freight and to network investments to increase capacity, improve service quality and increase productivity.

Total combined average daily package volume in the FedEx Express and FedEx Ground segments grew 8 pct year over year for the quarter, due to growth in ground and international express shipments. The increase in international domestic express shipments resulted primarily from recent international acquisitions.

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.’