FedEx Reports $181 Million First-Quarter Profit
FedEx Corp. said Thursday it earned $181 million, or 58 cents a share, in its fiscal first quarter, down from a year ago but an improvement from a fourth-quarter loss.
The per-share earnings matched the company’s projection Friday. In last year’s first quarter, FedEx earned $384 million, or $1.23 per share.
Revenue for the quarter ended Aug. 31 fell 20% to $8 billion, the company said in a statement.
Chairman and Chief Executive Officer Frederick Smith attributed the profit to better-than-expected international volume and improved cost-control measures.
Less-than-truckload unit FedEx Freight’s operating income was $2 million — down 98% from $89 million a year ago but better than the fourth-quarter’s operating loss. Revenue fell 27% to $982 million.
The FedEx Express segment’s operating income was $104 million, down 70% from $345 million last year. Revenue fell 23% to $4.9 billion.
FedEx Express rates will increase by an average of 5.9% for domestic and export services effective Jan. 4, with that increase partially offset by reducing the fuel surcharge by 2%.
FedEx Ground’s operating income rose 7% to $209 million, while revenue slipped 2% to $1.73 billion. FedEx Ground and SmartPost rates and surcharges will be announced later this year.
FedEx Corp. is ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
