FedEx Reports $876 Million 4Q Loss
FedEx Corp. reported it lost $876 million in its fiscal fourth quarter, due largely to one-time charges totaling $1.2 billion.
The loss for the quarter ended May 31 was $2.82 per share, FedEx said Wednesday. Excluding the previously disclosed charges, the company earned 64 cents per share.
In the same quarter last year, FedEx lost $241 million, or 78 cents per share.
Revenue totaled $7.85 billion, down 20% from the previous year.
FedEx said earlier this month that it would report $1.2 billion in charges for its fourth quarter. Among those charges were $885 million related to its acquisitions of Kinko's Inc. and Watkins Motor Line, Bloomberg reported.
In a June 3 filing, the Memphis, Tenn., company blamed the decline in financial performance of the assets on “weak economic conditions.”
For the full fiscal year, FedEx earned $98 million, a 91% drop from last year's $1.1 billion. The profit was 31 cents per share, compared with $3.60 last year. Revenue fell 6% to 35.5 billion.
FedEx Freight saw an operating loss of $106 million in the fourth quarter, down from an income of $99 million a year ago. Revenue fell 28% to $948 million. For the year, the unit's operating loss was $44 million, compared with an income of $329 million last year. Revenue dropped 11% to $4.4 billion.
FedEx Ground's operating income was unchanged during the quarter at $203 million. Revenue inched down 1% to $1.7 billion. In the fiscal year, income increased 10% to $807 million, while revenue saw a 4% increase to $7.1 billion.
The FedEx Express unit lost $136 million in the fourth quarter, compared with a $426 million profit in 2008. The unit's revenue decreased 25% to $4.8 billion. Income plunged during the fiscal year by 58% to $794 million, from $1.9 billion. Revenue fell 8% to $22.4 billion.
FedEx is ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
