FedEx Corp.’s 3Q Profit Improves
FedEx Corp. said Thursday its third-quarter net income more than doubled, to $521 million, or $1.65 per share, from $231 million, or 73 cents, a year ago.
Revenue for the fiscal quarter ended Feb. 29 rose 9% to $10.56 billion, the company said in a statement.
Less-than-truckload unit FedEx Freight’s operating loss was $1 million, compared with a loss of $110 million a year ago. Revenue rose 10% to $1.23 billion. Average daily LTL yield rose 6%, while shipments rose 2%.
FedEx said its fourth-quarter earning will be $1.75 to $2.00 per share, compared with $1.75 per share a year ago. Full-year earnings per share will be $6.43 to $6.68, the company said.
FedEx Ground’s operating income jumped 43% to $465 million, with revenue up 14% to $2.48 billion. Average daily package volume rose 5%.
FedEx Express’ operating income almost doubled, to $349 million, while revenue rose 8% to $6.54 billion. Domestic revenue per package rose 9% and average daily package volume slipped 4%.
“We are pleased with the improved performance at FedEx Ground and FedEx Freight during our third quarter,” said Chief Financial Officer Alan Graf.
“We are evaluating actions to adjust our FedEx Express U.S. domestic network capacity and improve efficiency,” he said in a statement.
Separately, FedEx said it agreed to pay $3 million to settle allegations from the U.S. Department of Labor regarding discriminatory hiring practices for part-time package handlers at its ground division, the Wall Street Journal reported.
While not admitting any wrongdoing, the company said the allegations arose in 2004 and involved 25 ground unit locations, the Journal reported on its website Thursday.
FedEx Corp. is ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
