FedEx posts full-year $1.2 billion profit
FedEx Corporation posted a full-year net profit of US$1.2 billion, up from last yearÃ¢â‚¬™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 groupÃ¢â‚¬™s Express business was the key driver of the uptick with a 23 per […]
July 1, 2010
The groupÃ¢â‚¬™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, FedExÃ¢â‚¬™s CFO, Alan Graf said: Ã¢â‚¬Å“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 costsÃ¢â‚¬Â.