FedEx Corp. reported earnings of $1.53 per diluted share for the first quarter ended August 31, compared to $1.45 per share last year. Revenues of $11.0 billion were up 2 per cent from $10.8 billion the previous year. Operating margins of 7.2 per cent were up from 6.9 per cent the previous year, and net income of $489 million was up 7 per cent from last year’s $459 million.
Frederick W. Smith, FedEx Corp. Chairman, President and CEO commented “Growth in overall demand for our broad global portfolio of solutions drove our improved first quarter results.” FedEx Express remains focused on reducing costs while facing challenging global economic conditions. Meanwhile, FedEx Ground continues to generate strong profitability on growing customer demand for its services.
FedEx Express announced it will increase shipping rates by an average of 3.9 per cent for U.S. domestic, U.S. export and U.S. import services effective January 6, 2014. The FedEx Ground and FedEx SmartPost pricing changes for 2014 will be announced later this year. FedEx Freight implemented a 4.5 per cent general rate increase on July 1, 2013.
FedEx reaffirmed its forecast of full-year earnings per share growth of 7 per cent to 13 per cent from last year’s adjusted results. This outlook assumes the market outlook for fuel prices, U.S. GDP growth of 2.1 per cent and world GDP growth of 2.6 per cent. The capital spending forecast for fiscal 2014 remains $4 billion.