FedEx Corp. has reported earnings of $1.03 per diluted share for the third quarter ended Feb. 28,
compared to $0.68 per diluted share a year ago, a year-over-year increase of 51%.
FedEx Corp. reported the following consolidated results for the third quarter:
* Revenue of $7.34 billion, up 21% from $6.06 billion the previous year
* Operating income of $552 million, up 48% from $372 million a year ago
* Operating margin of 7.5%, up from last year's 6.1%
* Net income of $317 million, up 53% from $207 million the previous year
Total average daily package volume at FedEx Express and FedEx Ground combined grew more than 10% year over year for the quarter, led by double-digit growth in ground and FedEx International Priority shipments. FedEx Freight average daily LTL shipment volume increased 9%. FedEx Express, FedEx Ground and FedEx Freight each reported solid yield improvement.
Third quarter revenues included $499 million from FedEx Kinko's, which was acquired in February 2004, compared to approximately $100 million in revenue last year. Last year's third quarter included $14 million, or $0.03 per diluted share, of business realignment expenses associated with voluntary early retirement and severance programs.
During the quarter, operating income benefited from the timing of adjustments to the company's indexed fuel surcharges, as fuel costs declined from second quarter levels. However, should the recent trend of fuel cost increases continue, fourth quarter margins could be negatively impacted.
Earnings are expected to be $1.40 to $1.50 per diluted share in the fourth quarter. Capital expenditures for fiscal 2005 are expected to be approximately $2.3 billion.
For more information, including performance by individual business unit, visit www.fedex.com.