FedEx Reports Strong Third Quarter Earnings GrowthFedEx Reports Strong Third Quarter Earnings Growth

FedEx Corp. (NYSE: FDX) has reported strong third quarter earnings of $2.01 per diluted share for the third quarter ended February 28, compared to $1.23 per share last year.

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

• Revenue of $11.7 billion, up 4% from $11.3 billion the previous year
• Operating income of $962 million, up 50% from $641 million last year
• Operating margin of 8.2%, up from 5.7% the previous year
• Net income of $580 million, up 53% from last year’s $378 million

Operating results improved due to volume and base yield growth in all three transportation segments, a significant net benefit from fuel, benefits from profit improvement program initiatives, a lower year-over-year weather impact and reduced pension expense.

FedEx Freight Segment

• Revenue of $1.43 billion, up 6% from last year’s $1.35 billion
• Operating income of $68 million, up 94% from $35 million a year ago
• Operating margin of 4.8%, up from 2.6% the previous year
• Less-than-truckload (LTL) average daily shipments increased 3%, while LTL revenue per shipment grew 3% due to higher rates.

Operating results improved due to the positive impacts of higher LTL revenue per shipment and higher average daily LTL shipments.

Category: Featured, General Update