FedEx Projects Lower 4th Quarter Earnings

May 8, 2001
Package giant Federal Express Corp. has reported its earnings for its fourth quarter ending May 31 will be in the range of $0.50 to $0.60 per share, down from $0.85 per share during the same period last year – which would represent a drop of between 30% and 40%. “Deteriorating economic conditions and the rapid decline in the high-tech and other durable goods industries have increasingly affected FedEx
Package giant Federal Express Corp. has reported its earnings for its fourth quarter ending May 31 will be in the range of $0.50 to $0.60 per share, down from $0.85 per share during the same period last year – which would represent a drop of between 30% and 40%.

“Deteriorating economic conditions and the rapid decline in the high-tech and other durable goods industries have increasingly affected FedEx volumes,” said Alan B. Graf, Jr., the company’s executive vp and CFO.

Graf said that in April, U.S. domestic average daily volume at FedEx Express declined 9% year-over-year. Additionally, the growth rate of FedEx International Priority shipments slowed to 1% year-over-year. FedEx Ground package volume grew about 5%, while package yields at both FedEx Express and FedEx Ground continue to show solid growth, he said.

Graf added that FedEx expects the economic softness to continue into its fiscal 2002, which begins June 1, 2001.

“Although we are taking steps to substantially reduce expense and capital spending, we nonetheless expect our first-quarter earnings will be significantly below last year's $0.58 per share,” he said.

About the Author

Sean Kilcarr | Editor in Chief

Sean Kilcarr is a former longtime FleetOwner senior editor who wrote for the publication from 2000 to 2018. He served as editor-in-chief from 2017 to 2018.

 

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Waiting for a breakdown is costing you. Learn how smart preventive maintenance plans, accurate data, and cross-team coordination can protect your bottom line and boost profits...
Is your fleet ready for California's Clean Truck Check program? Our guide helps you navigate CARB compliance, avoid costly fines, and keep your trucks rolling. Learn how telematics...
Boost truck leasing profits with telematics insights! Reduce maintenance costs, improve uptime, and strengthen customer relationships. Learn how data drives success.
This free guide outlines simple steps for hiring and onboarding commercial drivers while ensuring that you meet Regulation Part 391 and maintain fully compliant driver qualification...