FedEx Third Quarter Results Improve With Global Economy
Driven by the improving global economy and higher shipment growth, FedEx Corp.'s fiscal third quarter net income was up 146 percent to $239 million, versus the year ago quarter's $97 million
Driven by the improving global economy and higher shipment growth, FedEx Corp.'s fiscal third quarter net income was up 146 percent to $239 million, versus the year ago quarter's $97 million.
"Outstanding execution of our business strategy and an improving global economy drove solid financial performance in the third quarter," said Frederick W. Smith, FedEx Corp. chairman, president and CEO.
The company's revenue grew 7 percent to $8.7 billion, compared to $8.14 billion a year ago. Operating income was $416 million, up 129 percent from $182 million last year.
The company attributes the improvements to strict cost controls and higher shipment growth, especially in its international express and FedEx Ground segments. However, the company also said it experienced increased net fuel costs, an operating loss at FedEx Freight and the partial reinstatement of certain employee compensation programs.
FedEx Freight incurred an operating loss of $107 million, compared to an operating loss of $59 million a year ago, on a 14 percent boost in revenue.
FedEx Express reported revenue of $5.44 billion, up 8 percent from $5.05 billion a year ago, with an operating income of $265 million, up from $45 million last year.
Meanwhile, FedEx Ground saw operating income increase 32 percent from a year ago, while revenue was up 7 percent to $1.91 billion. The company cited higher package volume and yield, lower self-insurance expenses and improved performance at FedEx SmartPost.
FedEx expects earnings per share of $1.17 to $1.37 in the fourth quarter, and $3.60 to $3.80 for fiscal 2010, which reflect the current market outlook for fuel prices and a continued modest recovery in the global economy. This is up from a previous expectation.
"With our improved performance and outlook, we are reinstating various employee compensation programs, which will dampen earnings growth in the fourth quarter and fiscal year 2011," said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. "We are also continuing to invest in long-term projects that improve service and reduce operating costs, such as long-range, fuel-efficient 777 freighters."
More Drivers
When Language Stops the Truck: The Return of ELP Out-of-Service Orders
English language proficiency rules for commercial drivers aren’t new, but renewed out-of-service enforcement has raised the stakes. Here’s what carriers need to know before a driver reaches a roadside inspection.
Read More →
Samsara Launches Custom AI Agent Builder
Agent Studio lets fleets create AI tools for hours-of-service monitoring, reporting and driver support, including agents that communicate by phone.
Read More →
Trucker Path Expands Reserved Parking Network
Trucker Path has added close to 6,000 more truck parking spaces to its Trucker Path Reserved Parking Network with the addition of Safe Truck Parking.
Read More →
EEOC Sues Texas Trucking Company Over Driver Age Limits
The agency says Trancasa USA rejected applicants over 65 and applied tougher driving-record standards to those over 60.
Read More →
Nussbaum, Roehl Announce Second Driver Pay Increase This Year
This year has seen a swath of major truck driver pay increases as freight capacity has tightened.
Read More →
From One Generation to the Next: How Mentorship Builds Safer Truck Drivers
After three decades in trucking, Harold Perry shares what he's learned about driver safety, mentorship, and helping the next generation build confidence behind the wheel.
Read More →
Truck Drivers Need More Than Another Alert
Fleets have more visibility into truck health, safety events, and driver activity than ever. The next challenge is turning all that information into useful guidance for the person who has to decide what to do next.
Read More →
FMCSA Removes 110 Truck Driver Training Schools from Certified ELDT List
Federal regulators also are targeting more than 160 additional training providers and launching a nationwide audit of third-party CDL skills testers as part of a broader crackdown on trucking fraud.
Read More →
Hours of Service Pilot Programs: FMCSA Readies for 2027 Rollout
Two pilot programs could eventually reshape hours-of-service rules, giving truck drivers options to pause their 14-hour clock or use longer split sleeper rest periods.
Read More →
Medical Cards, English Proficiency Reshape Roadcheck Violations
Medical-card violations jumped to the top of the driver out-of-service list during CVSA’s 2026 International Roadcheck, while English-language proficiency violations appeared among the leading violations for the first time.
Read More →