FedEx Reports Big Decline In Fourth Quarter Earnings, Freight Unit Holds Steady
The trucking, airline and parcel operation FedEx, reports revenue increased during its fiscal fourth quarter while net earnings were sharply lower.
The trucking, airline and parcel operation FedEx, reports revenue increased during its fiscal fourth quarter while net earnings were sharply lower.
Revenue moved higher in the three months ending May 31 to $11.4 billion compared to $11 billion from the same time a year ago. Net income declined to $303 million from $550 over the same time period.
For the entire fiscal year, FedEx reported $42.7 billion in revenue, compared to $44.3 billion in the previous year, while net income declined to $1.56 billion from $2.03 billion.
“FedEx Ground posted another strong year and FedEx Freight margins continued to improve,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “These positive developments did not fully offset tepid economic growth and customer preference for less costly international shipping services. FedEx Express results improved in the fourth quarter, and while near-term challenges remain, we are confident we are positioning FedEx for profitable, long-term growth.”
For the fourth quarter, the FedEx Freight segment reported revenue of $1.39 billion, down 1% from last year's $1.40 billion. Adjusted operating income was $81 million, unchanged from a year ago.
In October, the company announced profit improvement programs, which include a voluntary employee separation program. It was completed during the fourth quarter, and approximately 3,600 employees will be voluntarily leaving the company in phases.
For the fourth quarter, the FedEx Express segment reported revenue of $6.98 billion, up 3% from last year's $6.80 billion. Adjusted operating income was $460 million, up 11% from $415 million a year ago.
The FedEx Ground segment reported in the fourth quarter revenue of $2.78 billion, up 12% from last year's $2.48 billion, while adjusted operating income was $557 million, up 13% from $494 million a year ago.
More details are available on the FedEx webiste.
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