FedEx Reports Higher First Quarter Earnings
FedEx Corp. (NYSE: FDX) reported earnings of $2.42 per diluted share for the first quarter ended August 31, compared to adjusted earnings of $2.12 per diluted share a year ago.
Without adjustment, FedEx earned $2.26 per diluted share last year.
“FedEx Corp. is performing solidly given weaker-than-expected economic conditions, especially in manufacturing and global trade,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer.
Operating results rose compared to last year due to sharply increased operating income at FedEx Express. During the quarter, the company acquired 1.1 million shares of FedEx common stock.
For the first quarter, the FedEx Express segment reported:
- Revenue of $6.59 billion, down 4% from last year’s $6.86 billion
- Operating income of $545 million, up 45% from $377 million a year ago
- Operating margin of 8.3%, up from 5.5% the previous year
- Revenue decreased 4% as lower fuel surcharges and unfavorable currency exchange rates more than offset improved base rates.
In addition:
- U.S. domestic package volume grew by 1%, driven by growth in deferred box and overnight envelope.
- U.S. domestic revenue per package decreased 3% due to lower fuel surcharges, partially offset by strong base rates.
- FedEx International Economy volume grew 4%, while FedEx International
- Priority volume decreased 5%.
- International export revenue per package decreased 7%, as lower fuel surcharges and unfavorable currency exchange rates were partially offset by higher rates and improved package weights.
Operating income and margin improved due to higher base rates, the benefit from one additional operating day, and lower international expenses due to currency exchange rates, more than offsetting higher incentive compensation accruals. Profit improvement program initiatives continued to improve revenue quality and constrain expenses.
Category: General Update