FedEx posts full-year $1.2 billion profit

FedEx Corporation posted a full-year net profit of US$1.2 billion, up from last year’s $98 million. Revenue was down two per cent at $34.7 billion. For the fourth quarter, revenue climbed 20 per cent ona year-on-year basis to $9.4 billion. The group’s Express business was the key driver of the uptick with a 23 per […]


FedEx Corporation posted a full-year net profit of US$1.2 billion, up from last year’s $98 million. Revenue was down two per cent at $34.7 billion. For the fourth quarter, revenue climbed 20 per cent ona year-on-year basis to $9.4 billion.

The group’s Express business was the key driver of the uptick with a 23 per cent increase in daily shipments in the fourth quarter with a 23 per cent rise in revenue, hitting $5.9 billion. The recovery was driven by imports from Asia and a one per cent increase in volume within the US. FedEx Freight did not fare as well, with revenue up by 30 per cent to $1.2 billion, but posting an operating loss of $36 million compared to a $106 million loss in the year-earlier period. Yields fell by six per cent due to the effects of ongoing price wars in the segment, FedEx said.

Taking stock of the results, FedEx’s CFO, Alan Graf said: “Growth in industrial production and global trade is increasing demand for our transportation services, and yield management remains a top priority across all of our operating companies. However, we expect the growth in earnings in fiscal 2011 to be constrained by significant increases in fixed pension and volume-related aircraft maintenance expenses, along with higher anticipated healthcare costs”.