FedEx Reports Strong Revenue and Earnings Growth

Share this article:

Package delivery company FedEx Corp. posted a 40 percent surge in fiscal first-quarter profit yesterday, citing a robust global economy.

The Memphis-based company reported a net profit of $475 million for its 2007 fiscal first quarter that ended August 31, compared with $339 million a year earlier.

FedEx also reported revenue of $8.54 billion, up 11 from $7.71 billion the previous year, operating income of $784 million, up 34 percent from $584 million a year ago, and operating margin of 9.2 percent, up from last year's 7.6 percent.

Total combined average daily package volume at FedEx Express and FedEx Ground grew 5 percent year over year for the quarter, due to continued growth in ground and international express shipments.

FedEx said it remains confident in its ability to achieve solid profitable growth by taking advantage of strong international trade trends, increased demand for fast-cycle logistics and the expansion of online purchasing.

FedEx also lowered its current-quarter guidance 20 cents a share, to between $1.45 and $1.60 a share, due to a one-time charge of $145 million in up-front compensation for its pilots, who will announce their vote on a tentative labor agreement next month.

Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Direct Mail

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Direct Mail

USPS Commissions Brain Research on Direct Mail

USPS Commissions Brain Research on Direct Mail

The Office of the Inspector General seeks neuroscientists to investigate human responses to digital and physical media.

Direct Mail Remains Impactful

Direct Mail Remains Impactful

Even in this prolific digital age, direct mail proves to be a strong tool for marketers. Standard mail volume is growing at 3% and marketers will spend $45 billion on ...

Delivered: Coupon Mailers

Delivered: Coupon Mailers

What's in our mailbox this month: Coupons. See which ones are good deals—and which ones you shouldn't deal with.