FedEx Corp. reported strong second-quarter results for the three months ended Nov. 30, 2011.
At $10.59 billion, revenues were up 10 per cent over the year-ago period, while net profits at $497 million were up 76 per cent from year-ago levels. Earnings per diluted share were $1.57, compared with $1.16 per diluted share (before extraordinary items) a year ago. Operating margins improved dramatically to 7.4 per cent from 4.9 per cent. Operating results improved due to the continued strong performance of FedEx Ground driven by higher yields and volumes, as well as a significant improvement in profitability at FedEx Freight.
Frederick W. Smith, chairman and CEO, attributed the strong results to “effective yield management programs and strong demand for FedEx Home Delivery and FedEx SmartPost services. With the healthy growth in online shopping this holiday season, demand is increasing for these residential delivery services.”
The company expects third-quarter earnings per share in the range of $1.25 to $1.45, compared with reported earnings of $0.73 per share a year ago. For the full fiscal year ending May 31, 2012, FedEx expects to see earnings per share in the range of $6.25 to $6.75 per share, compared with reported earnings per share of $4.90 for fiscal 2011.
FedEx Freight, the largest less-than-truckload carrier in the U.S., achieved a 9-per-cent increase in revenues to $1.33 billion during the quarter, and reversed from an operating loss of $91 million a year ago to a positive profit of $40 million this quarter. Operating margins improved to 3.0 per cent during the quarter just ended from minus 7.5 per cent a year ago.
At $10.59 billion, revenues were up 10 per cent over the year-ago period, while net profits at $497 million were up 76 per cent from year-ago levels. Earnings per diluted share were $1.57, compared with $1.16 per diluted share (before extraordinary items) a year ago. Operating margins improved dramatically to 7.4 per cent from 4.9 per cent. Operating results improved due to the continued strong performance of FedEx Ground driven by higher yields and volumes, as well as a significant improvement in profitability at FedEx Freight.
Frederick W. Smith, chairman and CEO, attributed the strong results to “effective yield management programs and strong demand for FedEx Home Delivery and FedEx SmartPost services. With the healthy growth in online shopping this holiday season, demand is increasing for these residential delivery services.”
The company expects third-quarter earnings per share in the range of $1.25 to $1.45, compared with reported earnings of $0.73 per share a year ago. For the full fiscal year ending May 31, 2012, FedEx expects to see earnings per share in the range of $6.25 to $6.75 per share, compared with reported earnings per share of $4.90 for fiscal 2011.
FedEx Freight, the largest less-than-truckload carrier in the U.S., achieved a 9-per-cent increase in revenues to $1.33 billion during the quarter, and reversed from an operating loss of $91 million a year ago to a positive profit of $40 million this quarter. Operating margins improved to 3.0 per cent during the quarter just ended from minus 7.5 per cent a year ago.