FedEx Corp. said Thursday its second-quarter earnings slipped to $283 million, or 89 cents per share, from $345 million, or $1.10, a year ago, on charges related to the impending restructuring of its less-than-truckload operations.
Revenue rose 12% to $9.63 billion for the quarter ended Nov. 30, the company said, while boosting its full-year earnings forecast to $5 to $5.30 per share, from a previous estimate of $4.80 to $5.25 per share.
Third-quarter earnings will be 95 cents to $1.15 per share, FedEx said. It had forecast its second-quarter earnings to be $1.15 to $1.35 per share.
Excluding LTL restructuring charges, second-quarter earnings were $1.16 per share. Those charges plus another related to a legal matter at FedEx Express accounted for 27 cents per share.
The company said in September it would combine its FedEx Freight and FedEx National LTL operations, effective Jan. 30.
FedEx Freight reported an operating loss of $91 million for the quarter, compared with an operating loss of $12 million a year ago. Revenue rose 14% to $1.07 billion, while average daily LTL shipments improved 8%.
That loss was largely due from $86 million in LTL-restructuring costs, covering items such as severances, asset impairment and accelerated depreciation.
FedEx said it expects to take another $54 to $84 million in related costs in its third quarter, but said the total expected cost of the program has been cut to $140 to $170 million.
Its FedEx Express unit’s operating income fell 23% to $264 million, while revenue rose 13% to almost $6 billion. Average daily package volume rose 11%.
FedEx Ground’s operating income rose 24% to $296 million, while revenue rose 13%, to $2.08 billion. Average daily package volume rose 7%.
FedEx Corp. is ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
