FedEx Corp., Memphis, Tenn., last week reported that its net income of $1.13 billion for fiscal year 2008 was down 44 percent from the previous year, and reported a net loss of $241 million during the fourth quarter,
down from last year's net income of $610 million.

The company reported 2008 revenue of $38 billion, up 8 percent from $35.2 billion the previous year.

The fourth quarter results include the previously announced charge of $891 million related to the decision to minimize the use of the Kinko's trade name.

"Record high fuel prices and the weak U.S. economy dampened volume growth and substantially affected our bottom line," said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer.

John Larkin with Stifel Nicolaus observed that FedEx Freight "seems to have turned the corner on tonnage growth … with its long-haul LTL product growing faster than the traditional regional LTL business." He noted that the division's margin was hurt by below-average fuel surcharge s after lowering its scale last summer.

"The operating environment for fiscal 2009 is expected to be very difficult due to the weak U.S. economy and extremely high fuel prices," said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. "However, we will focus on reducing expenses and remaining cash flow positive, and will continue to take positive steps to improve the customer experience across our portfolio of services."