FedEx Corp. Net Income Increases 27 Percent in Fourth Quarter

Share this content:

FedEx Corp. reported net income of $568 million, up 27 percent from last year's $448 million as strong international and U.S. economic growth translated into higher package volumes.

Memphis TN-based FedEx reported revenue of $8.49 billion, up 10 percent from $7.72 billion from the previous year. Operating income of $927 million was up 25 percent from $740 million a year ago. Operating margin of 10.9 percent was up from 9.6 percent the previous year.

Total combined average daily package volume at FedEx Express and FedEx Ground grew approximately 4 percent year over year for the quarter, led by continued growth in ground and international express shipments.

For the full year, FedEx Corp. reported:

  • Revenue of $32.3 billion, up 10 percent from $29.4 billion the previous year;
  • Operating income of $3.01 billion, up 22 percent from $2.47 billion a year ago.
  • Operating margin of 9.3 percent, up from 8.4 percent the previous year.
  • Net income of $1.81 billion, up 25 percent from last year's $1.45 billion.

FedEx expects earnings to be $1.45 to $1.60 per diluted share in the first quarter of fiscal 2007 and $6.45 to $6.80 per diluted share for the full year. The company also expects continued growth in FedEx International Priority, U.S. domestic overnight express box, FedEx Ground and FedEx Freight shipments and improving operating margins in the transportation segments.

In other news, FedEx Corp. announced May 26 an agreement to acquire the less-than-truckload freight operations of Watkins Motor Lines and certain affiliates for $780 million, payable in cash. The transaction is expected to close during the first quarter of fiscal 2007 and is subject to customary conditions, including government approvals.

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

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