FedEx reports record profits
Jun 23, 2006 10:26 AM
FedEx
Corporation’s latest financial results show that fleets can increase profits
sharply, despite rising fuel costs. The
company reported a better-than-expected 27% rise in net income for the period.
“FedEx posted record financial results in the fourth quarter and full year,
as we ended our fiscal 2006 in an environment of solid economic growth in the U
S and in international markets,” said Frederick Smith, chairman, president and chief executive
officer. “We remain optimistic about the global economic environment for fiscal
2007 and our ability to effectively manage our business.”
FedEx Corp. reported the following consolidated results for the fourth
quarter:
• Revenue of $8.49 billion, up 10% from
$7.72 billion the previous year
• Operating income of $927 million, up 25%
from $740 million a year ago
• Operating margin of 10.9%, up from 9.6%
the previous year
• Net income of $568 million, up 27% from
last year’s $448 million
Total combined average daily package volume at FedEx Express and FedEx
Ground grew approximately 4% year over year for the quarter, led by continued
growth in ground and international express shipments.
On May 26, FedEx Corp. announced 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.
