FedEx Corp., Memphis, TN, increased its earnings estimate last week for the fiscal 2004 fourth quarter to $1.20 to $1.30 per diluted share, excluding the costs of the company's business realignment activities, compared with $0.92 per diluted share a year ago.
Fiscal 2004 earnings are now expected to be $3.40 to $3.50 per diluted share, excluding business realignment costs and a one-time tax benefit recorded in the first quarter, compared with $2.74 per diluted share a year ago.
FedEx also announced it expects fiscal 2005 earnings of $4 to $4.20 per diluted share, up 14 percent to 24 percent over the company's revised fiscal 2004 forecast. Its fiscal 2005 year begins in June.
“We expect fiscal 2005 to be a strong year for FedEx, with very good improvement in our operating margin, earnings per share, cash flow and returns,” said Alan B. Graf Jr., executive vice president and chief financial officer. “Our optimism stems from increasing customer demand for services in all business segments, a lower cost structure at FedEx Express and improving economic conditions.”