Driven by the improving global economy and higher shipment growth, FedEx Corp.'s fiscal third quarter net income was up 146 percent to $239 million, versus the year ago quarter's $97 million.
"Outstanding execution of our business strategy and an improving global economy drove solid financial performance in the third quarter," said Frederick W. Smith, FedEx Corp. chairman, president and CEO.
The company's revenue grew 7 percent to $8.7 billion, compared to $8.14 billion a year ago. Operating income was $416 million, up 129 percent from $182 million last year.
The company attributes the improvements to strict cost controls and higher shipment growth, especially in its international express and FedEx Ground segments. However, the company also said it experienced increased net fuel costs, an operating loss at FedEx Freight and the partial reinstatement of certain employee compensation programs.
FedEx Freight incurred an operating loss of $107 million, compared to an operating loss of $59 million a year ago, on a 14 percent boost in revenue.
FedEx Express reported revenue of $5.44 billion, up 8 percent from $5.05 billion a year ago, with an operating income of $265 million, up from $45 million last year.
Meanwhile, FedEx Ground saw operating income increase 32 percent from a year ago, while revenue was up 7 percent to $1.91 billion. The company cited higher package volume and yield, lower self-insurance expenses and improved performance at FedEx SmartPost.
FedEx expects earnings per share of $1.17 to $1.37 in the fourth quarter, and $3.60 to $3.80 for fiscal 2010, which reflect the current market outlook for fuel prices and a continued modest recovery in the global economy. This is up from a previous expectation.
"With our improved performance and outlook, we are reinstating various employee compensation programs, which will dampen earnings growth in the fourth quarter and fiscal year 2011," said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. "We are also continuing to invest in long-term projects that improve service and reduce operating costs, such as long-range, fuel-efficient 777 freighters."
"Outstanding execution of our business strategy and an improving global economy drove solid financial performance in the third quarter," said Frederick W. Smith, FedEx Corp. chairman, president and CEO.
The company's revenue grew 7 percent to $8.7 billion, compared to $8.14 billion a year ago. Operating income was $416 million, up 129 percent from $182 million last year.
The company attributes the improvements to strict cost controls and higher shipment growth, especially in its international express and FedEx Ground segments. However, the company also said it experienced increased net fuel costs, an operating loss at FedEx Freight and the partial reinstatement of certain employee compensation programs.
FedEx Freight incurred an operating loss of $107 million, compared to an operating loss of $59 million a year ago, on a 14 percent boost in revenue.
FedEx Express reported revenue of $5.44 billion, up 8 percent from $5.05 billion a year ago, with an operating income of $265 million, up from $45 million last year.
Meanwhile, FedEx Ground saw operating income increase 32 percent from a year ago, while revenue was up 7 percent to $1.91 billion. The company cited higher package volume and yield, lower self-insurance expenses and improved performance at FedEx SmartPost.
FedEx expects earnings per share of $1.17 to $1.37 in the fourth quarter, and $3.60 to $3.80 for fiscal 2010, which reflect the current market outlook for fuel prices and a continued modest recovery in the global economy. This is up from a previous expectation.
"With our improved performance and outlook, we are reinstating various employee compensation programs, which will dampen earnings growth in the fourth quarter and fiscal year 2011," said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. "We are also continuing to invest in long-term projects that improve service and reduce operating costs, such as long-range, fuel-efficient 777 freighters."
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