FedEx Reports Lower 4Q Profit
FedEx Corp. said Wednesday its fourth-quarter earnings fell 45% from a year ago, as the company reported charges for realigning its business and to retire cargo aircraft.
Net earnings declined to $303 million, or 95 cents a share, from $550 million, or $1.73, in the same period last year.
Revenue for the quarter ended May 31 rose to $11.4 billion from $11 billion.
For the full year, FedEx’s net income fell 23% to $1.56 billion, or $4.91 per share, from $2.09 billion, or $6.41, a year ago. Revenue slipped to $42.7 billion from $44.3 billion.
FedEx said it took a business alignment charge of 98 cents a share in the fourth quarter, along with a previously announced charge of 20 cents a share for retiring cargo aircraft.
Its FedEx Freight less-than-truckload segment’s operating income fell 53% from a year ago to $38 million in the fourth quarter. Adjusted operating income was $81 million, unchanged from a year ago. LTL unit revenue slipped 1% to $1.39 billion.
FedEx Express posted zero operating income in the quarter, compared with $281 million a year ago, while adjusted operating income rose 11% to $460 million. Revenue rose 3% to $6.98 billion.
FedEx Ground’s fourth-quarter operating income slipped 6% to $464 million, with adjusted operating income up 13% to $557 million. Revenue rose 12% to $2.78 billion.
The company projected earnings-per-share growth of 7% to 13% in fiscal year 2014 from 2013’s adjusted results.
FedEx Corp. is ranked No. 2 on the Transport Topics Top 100 listing of U.S. and Canadian for-hire carriers.
