FedEx’s 3Q Earnings Fall 6%
FedEx Corp. said Thursday its fiscal third-quarter profit fell 6% to $393 million, or $1.26 a share, from $420 million, or $1.35 a share, a year earlier.
The earnings were within the company’s forecast that it would earn $1.15 to $1.30 per share in the quarter, which ended Feb. 29. Revenue rose 10% to $9.4 billion.
“FedEx faces a challenging economic environment that includes persistently high oil prices, sluggish U.S. growth and continued concerns in the credit markets,” Chairman and Chief Executive Officer Frederick Smith said in a statement.
FedEx said it would earn $1.60 to $1.80 per share in its fiscal fourth quarter, down from $1.96 last year. That projected downturn also was pinned on higher fuel prices and a weaker economy, FedEx said.
Operating income at the less-than-truckload FedEx Freight unit fell 8% from a year ago to $46 million, while revenue rose 5% to $1.16 billion. LTL shipments dipped 3%.
Operating income at the FedEx Ground segment dropped 13% to $170 million, while revenue rose 13% to $1.72 billion.
FedEx Express’ operating income rose 8% to $425 million, while revenue gained 11% to $6.13 billion.
Revenue at the FedEx Services segment, which includes FedEx Kinko’s operations, rose 1%. Kinko’s unit CEO Ken May is stepping down March 31, to be replaced by Brian Philips. (Click here for previous coverage.)
FedEx Corp. is ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
