FedEx Corp. continued to see an improvement in its performance during the fourth quarter of fiscal 2010, posting net income of $419 million, or $1.33 a share.
This compares with a net loss of $876 million, or $2.82 a share, during the year-ago quarter, and net income of $239 million last quarter.
The company attributes the gain to using its global networks to take advantage of the recovery, said Frederick W. Smith, FedEx Corp. chairman, president and CEO. "We ended our fiscal year a stronger company, and I am confident FedEx is very well positioned for future revenue and earnings growth."
Revenue for the quarter was $9.43 billion, up 20 percent from $7.85 billion the previous year. Operating income was $696 million, up from the year-ago's operating loss of $849 million.
The company experienced stronger shipment growth in international express and FedEx Ground. FedEx Express reported revenue of $5.88 billion, a 23 percent boost from last year's $4.80 billion. FedEx Ground saw its revenue at $1.96 billion, growth of 15 percent over last year's $1.70 billion.
The company said an operating loss at FedEx Freight, the reinstatement of certain employee compensation programs and higher aircraft maintenance expenses impacted the quarter's results.
FedEx Freight reported an operating loss of $36 million, compared to a loss of $106 million a year ago. The segment's revenue was up 30 percent, however. The operating loss was a result of lower yields and higher volume-related costs, as significantly higher shipment levels required increased purchased transportation and other expenses.
Looking ahead, the company expects earnings to be in the range of 85 cents to $1.05 per share next quarter, and $4.40 to $5 per share for fiscal 2011.
"We expect continued improvement in both revenue and earnings in fiscal 2011," said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. "Resumed growth in industrial production and global trade is increasing demand for our transportation services, and yield management remains a top priority across all of our operating companies."
