FedEx’s Fourth-Quarter Profit Rises 33%
FedEx Corp. said Wednesday its fiscal fourth-quarter profit rose 33% from a year ago on a stronger economy, higher demand and increased volumes.
Net income rose to $558 million, or $1.75 per share, from $419 million, or $1.33, a year ago. Revenue for the quarter ended May 31 rose 12% to $10.55 billion. Operating income rose 28% to $888 million.
For its full fiscal year, FedEx earned $1.45 billion, up 23% from last year’s $1.18 billion. Per-share earnings rose to $4.57, from $3.76, while adjusted earnings for the current year were $4.90 excluding certain items.
The company had forecast its fourth-quarter earnings would be $1.66 to $1.83 per share and that adjusted earnings for the full year would be $4.83 to $5 per share.
FedEx projected its first-quarter earnings would be $1.40 to $1.60 per share, and full-year 2012 earnings would be $6.35 to $6.85 per share.
Less-than-truckload unit FedEx Freight’s fourth-quarter operating income was $42 million, compared with a $36 million operating loss a year ago. Revenue rose 6% to $1.31 billion.
LTL yield increased 13% primarily due to yield management actions and higher fuel surcharges. LTL average daily shipments fell 8% as a result of the yield management actions, FedEx said.
Its FedEx Express segment’s fourth-quarter operating income rose 4% to $429 million, while revenue improved 13% to $6.63 billion.
FedEx Ground’s operating income jumped 31% to $417 million, while revenue rose 15% to $2.26 billion. Average daily package volume rose 6%.
FedEx Corp. is ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
