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.