Moon-based FedEx units help boost quarterly revenues
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The ground division of FedEx Corp. delivered more packages in the fourth quarter, helping drive a 9 percent revenue gain at the Moon-based unit of the Tennessee shipping giant.
Overall, FedEx Corp. beat analysts expectations for its fourth quarter but the Memphis company raised concerns with its conservative outlook for the coming fiscal year. Officials also said they are planning significant cost reduction programs that will be unveiled in the fall.
In the three months ended in May, the company reported revenue of $11 billion compared to $10.6 billion a year earlier.
Profit of $550 million, or $1.73 per share, compared to $558 million, or $1.75 a year earlier.
This year's results reflect the one-time expense of retiring certain aircraft. Excluding those charges, FedEx earnings of $1.99 per share exceeded analysts expectations for $1.92 per share, as reported by Thomson Financial.
The FedEx Ground division headquartered in southwestern Pennsylvania, which includes FedEx Home Delivery and FedEx Smart Post, produced revenue of $2.48 billion in the fourth quarter, up from $2.26 billion in the same quarter a year ago.
The division showed a 18 percent gain in operating income to $494 million and posted an operating margin of 20 percent, up from 18.4 percent.
For the fiscal year ended May 31, the Memphis company reported revenue of $42.7 billion, up from $39.3 billion a year earlier.
Profit of $2.03 billion, or $6.41 per share, compared to $1.45 billion, or $4.57 per share, the preceding year.
In the coming fiscal year, FedEx has projected earnings in the range of $6.90 to $7.40, not including the impact of the cost reduction programs in the works. Analysts, on average, had been looking for full-year earnings of $7.39 per share.
First Published June 19, 2012 11:07 am