Q2 Earnings More Than Triple At FedEx
FedEx, Memphis, TN, earned $354 million in the three months ended Nov. 30 compared with net income of $91 million a year ago.
The latest results include a one-time charge of $48 million reflecting a cut in government financial relief for the company for lost business following the Sept. 11, 2001, terrorist attacks. The one-time charge resulted from the Department of Transportation's decision to cut relief received by FedEx Express under the Air Transportation Safety and System Stabilization Act. FedEx has said it plans to appeal that decision.
Revenue for the quarter of $7.33 billion was up 24 percent from $5.92 billion in the previous year, with strong growth in the FedEx Ground and FedEx Freight divisions. The revenue figure includes $524 million from the company's newest division, FedEx Kinko's, acquired in February.
Operating income totaled $600 million, up from $183 million a year ago.