FedEx Corp., Memphis, Tenn., has reported earnings of $0.68 per diluted share for the quarter ended Feb. 29, including $0.03 per diluted share of costs associated with the previously announced business realignment through early retirement and severance programs.
Excluding these costs, earnings for the third quarter were $0.71 per diluted share. Earnings were $0.49 per diluted share a year ago.
"Our revenue growth accelerated, reflecting a strengthening worldwide economy and successful execution of our business strategy, highlighted by the strong performance of our FedEx International Priority service" said Alan B. Graf Jr., executive vice president and chief financial officer. "In addition, substantial cost savings from our business realignment programs at FedEx Express are resulting in meaningful improvement in our Express margins."
The third quarter pretax cost of the business realignment programs was $14 million. Approximately $65 million of savings were realized in the third quarter, reflected primarily in lower ongoing salaries and employee benefits costs. The company expects the savings from these initiatives to be $50 million to $60 million in the fourth quarter and the costs to be approximately $10 million. Related savings are expected to be $230 million to $240 million per year in fiscal 2005 and beyond.
Excluding these costs, earnings for the third quarter were $0.71 per diluted share. Earnings were $0.49 per diluted share a year ago.
"Our revenue growth accelerated, reflecting a strengthening worldwide economy and successful execution of our business strategy, highlighted by the strong performance of our FedEx International Priority service" said Alan B. Graf Jr., executive vice president and chief financial officer. "In addition, substantial cost savings from our business realignment programs at FedEx Express are resulting in meaningful improvement in our Express margins."
The third quarter pretax cost of the business realignment programs was $14 million. Approximately $65 million of savings were realized in the third quarter, reflected primarily in lower ongoing salaries and employee benefits costs. The company expects the savings from these initiatives to be $50 million to $60 million in the fourth quarter and the costs to be approximately $10 million. Related savings are expected to be $230 million to $240 million per year in fiscal 2005 and beyond.
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