FedEx Reports Higher Profits, Revenue in First Quarter
edEx Corp. on Thursday reported net income for its fiscal first quarter rose 40% to $475 million or $1.53 a share, compared with $339 million or $1.10 in 2005.
The company’s revenue for the quarter ended August 31 increased 11% to $8.54 billion from $7.71 billion last year, FedEx said in a statement.
Operating income for the carrier’s less-than-truckload FedEx Freight unit increased 11% over the previous first quarter to $150 million, while revenue rose 14% to $1.01 billion. LTL yield improved 8% on higher rates and fuel surcharges.
Operating income at the company’s FedEx Ground segment increased 6% to $157 million, while revenue increased 16% to $1.42 billion.
Total combined average daily package volume at FedEx Express and FedEx Ground grew 5% year over year for the quarter, due to continued growth in ground and international express shipments, the company said.
Operating income for the company’s FedEx Kinkos segment fell to $10 million, down 38% from last year. Revenue decreased 3% to $504 million.
In early September, FedEx completed its $780 million purchase of LTL carrier Watkins Motor Lines, which the company expects will add $900 million in segment revenue in its 2007 fiscal year.
The parcel carrier said it will rebrand the operations of Watkins Motor Lines and Watkins Canada Express as FedEx National LTL and FedEx Freight Canada.
During the quarter, FedEx announced that its FedEx Express segment and the U.S. Postal Service entered into a new contract for domestic air transportation of postal express shipments, which will run through September 2013. (Click here for previous coverage.)
The company also reached a tentative agreement with the Air Line Pilot’s Association on a new labor contract for FedEx pilots. ALPA members will vote on the contract during FedEx’s fiscal second quarter. (Click here for previous coverage.)
FedEx is ranked No. 2 on the Transport Topics 100 list of the largest for-hire carriers in the United States and Canada.
