FedEx Says 1Q Profit Slips; Cuts Full-Year Forecast
Profit Doubles at FedEx Freight LTL Unit
FedEx Corp. on Tuesday reported its fiscal first-quarter profit fell slightly from a year ago, and the company cut its full-year earnings outlook.
Net income slipped to $459 million, or $1.45 per share, from $464 million, or $1.46, a year ago. Operating income rose 1% to $742 million.
Revenue for the quarter ended Aug. 31 rose to $10.79 billion from $10.52 billion a year ago, FedEx said.
FedEx earlier this month lowered its first-quarter profit forecast to $1.37 to $1.43 per share, from an originally projected $1.45 to $1.60 per share.
The company cut its full-year earnings forecast to a range of $6.20 to $6.60 per share from a previous forecast of $6.90 to $7.40, excluding potential benefits from cost cuts, citing a weak global economy.
FedEx said it expects to earn $1.30 to $1.45 per share in the second quarter, down from $1.57 in the same period last year.
Less-than-truckload unit FedEx Freight’s operating profit more than doubled to $90 million, while revenue rose 5% to $1.4 billion from a year ago.
LTL average daily shipments rose 4% due to an increase in customer demand for the FedEx Freight Economy service offering all lengths of haul, the company said.
Its FedEx Express unit’s operating income fell 28% to $207 million, while revenue rose 1% to $6.63 million. The unit will boost rates by 3.9% in early January.
FedEx Ground’s operating income rose 9% to $445 million, while revenue rose 8% to $2.46 billion.
FedEx Corp. is ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
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