VOL. 126 | NO. 121 | Wednesday, June 22, 2011
FedEx Revenues and Net Income Up
By Bill Dries
Memphis-based FedEx posted fourth quarter revenues of $10.55 billion, an increase of 12 percent for its fiscal year that ended in May. And it reported a net income of $558 million for the quarter, up 33 percent from the year before.
For the company's fiscal year that ended May 31, FedEx had revenues of $39.3 billion, a 13 percent increase from the previous year and net income of $1.45 billion or 23 percent more than last year
The air cargo and package delivery giant attributed the revenue and earnings increase to volume growth in ground and international express shipments and strong yield improvement in all segments of the corporation.
That included FedEx Freight which returned to profitability. Freight showed an operation loss of $36 million a year ago. The division took an $18 million impairment charge last year after it acquired Watkins Motor Lines. The calendar year began with the freight division consolidating with it less than a truckload, or LTL, operations. The net cash effect was “immaterial” according to the company but the benefit came from efficiencies and yield growth.
FedEx founder Fred Smith also cited an improving economy and “decisive actions to grow our business,” as factors in the growth across all divisions.
“With this positive momentum, moderate economic growth and subsiding cost headwinds, FedEx is well positioned to deliver strong earnings growth in fiscal 2012,” he said in a written statement.
Earnings per diluted share at the end of the FedEx fourth quarter were $1.75 which is a year over year 32 percent increase from the $1.33 at the end of May 2010.