FedEx 3Q earnings drop

Share this content:

FedEx Corp. said third-quarter profits fell for the first time in three years to 2 percent, as a slowing U.S. economy, lower fuel surcharges and winter storms damped shipping demand.

Net income of $420 million dropped from $428 million a year ago, Memphis-based FedEx said. The company also reported an operating margin of 7.5 percent, down from last year's 8.9 percent, and operating income of $641 million, down 10 percent from $713 million a year ago. Revenue, however, was $8.59 billion, up 7 percent from $8 billion the previous year.

"The U.S. economy grew at a lower rate than we expected in the third quarter and we saw continued adjustments in the automotive and housing markets," said Frederick W. Smith, president/CEO of FedEx Corp., in a teleconference last week. "I believe, however, this represents a healthy transition for the economy as it phases into a more sustainable growth rate. FedEx is in excellent position to take full advantage of global economic growth trends and deliver overall outstanding financial results in the long run."

FedEx saw total combined average daily-package volume at FedEx Express and FedEx Ground grow 4 percent year over year for the quarter, led by ground and international express package growth.

close

Next Article in Direct Mail

Sign up to our newsletters



Company of the Week

PAN Communications is an award-winning integrated marketing and public relations agency for B2B technology and healthcare brands. PAN's data-driven approach allows the firm to specialize in public relations, social media, content and influencer marketing, and data and analytics. PAN partners with brands to create unique, integrated campaigns that captivate audiences.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above