FedEx has reported its fiscal fourth quarter results showing net income increased to $730 million, or $2.46 per share, compared with $679 million, or $2.13 per share, from the same time a year ago.
Revenue increased to $11.8 billion from $11.4 billion.
"An outstanding fourth quarter helped FedEx post solid results for fiscal 2014, and we believe we are well positioned for a strong fiscal 2015," said Frederick W. Smith, FedEx chairman, president and chief executive officer.
For the full 2014 fiscal year, FedEx reported net income of $2.1 billion, or $6.75 per share, compared to $1.98 billion a year earlier, or $6.23 per share, while revenue grew to $45.6 billion from $44.3 billion during the same time.
For fiscal 2015, FedEx projects earnings to be $8.50 to $9.00 per share. The outlook assumes no net year-over-year fuel impact and continued moderate economic growth, according to the company.
For the fourth quarter, the FedEx Freight segment reported revenue of $1.55 billion, up 12% from last year's $1.39 billion. Operating income was $122 million, up 51% from an adjusted $81 million a year ago.
The company reported less-than-truckload average daily shipments grew 12%, including a 14% increase in demand for priority service weight per shipment grew 2%, driving a 1% increase in revenue per shipment.
FedEx said operating results improved due to the positive impacts of higher average daily shipments, higher weight per shipment and improved operational efficiencies, partially offset by one fewer operating day.
The FedEx Ground segment reported fourth quarter revenue of $3.01 billion, up 8% from last year's $2.78 billion. Operating income was $586 million, up 5% from an adjusted $557 million a year ago.
FedEx Ground average daily volume grew 8% in the fourth quarter, primarily driven by growth in e-commerce, the company said. Revenue per package increased 2% due to rate increases and higher residential surcharges, partially offset by lower fuel surcharges.
Its operating results benefited from higher ground volume and revenue per package, partially offset by higher network expansion costs and one fewer operating day, according to FedEx.
For the fourth quarter, the FedEx Express segment reported revenue of $7 billion, up slightly from last year's $6.98 billion.
Operating income was $475 million, up 3% from an adjusted $460 million a year ago.
FedEx said revenue increased due to 2% higher package volume and higher base package yields, partially offset by the effects of one fewer operating day, lower fuel surcharges and lower express freight revenues. U.S. domestic average daily volume increased 3%, while U.S. domestic revenue per package was flat as lower fuel surcharges offset higher weight per package and favorable service mix.
Operating results increased as higher base package yields and volume, along with lower pension expense, more than offset the significant negative net impact of fuel, lower freight revenue and one fewer operating day, according to the company
"With continued modest economic improvement, our results in fiscal 2015 should benefit from base performance improvement and ongoing execution of our profit improvement initiatives at FedEx Express, continued profitable growth at FedEx Ground and FedEx Freight, and our share repurchase program,” said Alan B. Graf, Jr., FedEx executive vice president and chief financial officer.