FedEx Corp.’s 2Q Income Declines
FedEx Corp. said Thursday that its second-quarter profit fell to $479 million or $1.54 a share, down from $511 million or $1.64 a year earlier.
Revenue for the fiscal quarter ended Nov. 30 rose 6% to $9.45 billion, the company said in a statement.
“Higher fuel prices and continued weak growth in the U.S. economy have hindered profitability,” Chief Financial Officer Alan Graf said in a statement.
FedEx last month cut its second-quarter earnings forecast to $1.45 to $1.55 per share, from a previous forecast of $1.60 to $1.75 per share.
The company said Thursday that it would earn $1.15 to $1.30 per share for its third fiscal quarter, down from $1.35 per share last year.
For the full year, the company said it would earn $6.40 to $6.70 per share — down from an earlier forecast of $6.70 to $7.10 per share — assuming “relative stability in fuel prices and no additional weakening in the economy.”
Operating income less-than-truckload FedEx Freight fell 43% from a year ago to $79 million, while revenue rose 1% to $1.24 billion. LTL shipments fell 6%.
Operating income at the FedEx Ground segment declined 10% to $173 million, while revenue rose 12% to $1.7 billion.
FedEx Express’ operating income rose 5% to $531 million, while revenue rose 6% to $6.04 billion.
FedEx Corp. is ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
