FedEx Q2 Income Unchanged Despite Higher Revenue

Share this content:
FedEx Corp.'s net income of $245 million for the second quarter that ended Nov. 30 was unchanged from last year despite a 10 percent rise in revenue to $5.67 billion, the company said yesterday.


Much of the shortfall came in the company's flagship FedEx Express, which had a 26 percent decline in operating income to $228 million. Quarterly revenue at the express unit was $4.1 billion, or 7 percent more than last year's Q2, which included the shutdown of U.S. air transport for several days after the Sept. 11 attacks.


FedEx attributed the decline in operating income to higher costs for benefits, maintenance and fuel and a slight decline in U.S. volumes. In addition, last year included a $17 million lift from a tax settlement.


International Priority volume grew 13 percent in the second quarter, led by exports from Asia, where volume rose 27 percent year over year. FedEx also said its venture with the U.S. Postal Service is bearing fruit.


FedEx Ground reported revenue of $863 million, up 27 percent from last year's $677 million, and operating income of $135 million, up 69 percent from $80 million a year ago. Average daily package volume grew 25 percent in the second quarter, with about one-third of that coming from FedEx Home Delivery.


FedEx also said it anticipates reducing capital spending in 2003 to $1.7 billion, down $200,000 from its previous forecast.


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