FedEx Posts Annual Results

FedEx has earned $838 million in profit for the fiscal year ended May 31, an $8 million gain (1%) over the 2003 fiscal year. The company netted $24.7 billion in revenue— 10% over 2003 as the company’s Express, Ground and Freight segments expanded.

For its fourth quarter results posted a 47% boost in profits over the same period last year to $412 million, while revenue over the same period last year increased 20% to $7.04 billion. The package delivery company cited strong demands in all of its divisions, including its recently-acquired Kinko’s.

“Our entire portfolio of transportation services is experiencing strong demand, especially in ground, international express and regional less-than-truckload services,” said Frederick W. Smith, FedEx chairman, president & CEO, commenting on the fourth quarter results.

The company’s bread-and-butter segment, FedEx Express, enjoyed a 10% revenue boost for the fourth quarter over the same period last year to $4.71 billion. The segment posted big gains in its International Priority (IP) service as its revenue went up 22% over the third quarter. The company noted strong activity in Asia and in U.S. exports as IP package volume went up 12% and revenue per package gained 7% over last quarter. Domestic Express package volume grew 2% while revenue per package went up 6%.

The Ground segment, its second-highest grossing division, posted a 21% revenue gain over the same quarter last year to $758 million. Package volume grew 12% for the quarter, the highest this year.

The Freight segment enjoyed a 21% increase in revenue over 4Q 2003 to $758 million. LTL shipments increased 11% over the same quarter last year.

Kinko’s netted $521 million in revenue, driven by demand from commercial customer sales, and signs and banners.

The company estimates it saved $65 million for the fourth quarter and $150 million for the year due to scale backs in salaries and employee benefits costs.