FedEx’s 1Q Profit Improves
FedEx Corp. reported Sept. 18 fiscal first-quarter net income for the period ended Aug. 31 increased 6.5% to $489 million, or $1.54 per share, as profit rose in each of the company’s business segments.
FedEx, based in Memphis, Tenn., improved operating income, which excludes interest and taxes, to $236 million from $207 million in the Express business and to $468 million from $445 in the Ground unit. FedEx Freight’s operating income inched up to $91 million from $90 million.
In the year-earlier quarter, net income was $459 million, or $1.45 per share. Revenue improved to $11 billion from $10.8 billion.
“Growth in overall demand for our broad global portfolio of solutions drove our improved first-quarter results,” CEO Fred Smith said in a statement. “FedEx Express remains focused on reducing costs while facing challenging global economic conditions. Meanwhile, FedEx Ground continues to generate strong profitability on growing customer demand for its services.”
Revenue rose to $1.42 billion at FedEx Freight and climbed to $2.73 billion from $2.46 billion at the Ground unit. Express revenue slipped to $6.61 billion from $6.63 billion.
The company also maintained its forecast that earnings will rise as much as 13% over the 2013 fiscal year.
