FedEx Corp. reported a 41 percent increase in third-quarter earnings yesterday, resulting partly from a strong international economy and a successful business realignment program.
In the quarter, which ended Feb. 29, earnings were $207 million, up from $147 million in the same period last year. Results include costs associated with an early retirement and severance program. Without those charges, FedEx, Memphis, TN, earned $216 million in the period.
Total revenue was $6.06 billion, up from $5.55 billion in the year-ago period.
“Our revenue growth accelerated, reflecting a strengthening worldwide economy and successful execution of our business strategy, highlighted by the strong performance of our FedEx International Priority service,” said Alan B. Graf Jr., executive vice president and chief financial officer. “In addition, substantial cost savings from our business realignment programs at FedEx Express are resulting in meaningful improvement in our Express margins.”
FedEx said that 3,600 employees of FedEx Express, the company's cargo airline, accepted early retirement or severance, with most of the cost of that program falling in the second quarter. Third-quarter costs of the program were $14 million, with about $65 million in savings mainly from lower expenses for salaries and employee benefits.
FedEx said its recent $2.4 billion purchase of copy shop chain Kinko's affected the quarterly report for only 18 days, adding $100 million in revenue.