FedEx profits double

FedEx Corp. said today its quarterly profits more than doubled from a year earlier because of gains in ground deliveries, but warned that the next quarter may fall short of Wall Street forecasts. FedEx reported net income of $236 million, or 78 cents a share, in the fiscal fourth quarter, which ended May 31, compared with $113 million, or 38 cents a share, a year earlier. Analysts had predicted that

Tim Parry

June 25, 2002

FedEx Corp. said today its quarterly profits more than doubled from a year earlier because of gains in ground deliveries, but warned that the next quarter may fall short of Wall Street forecasts.

FedEx reported net income of $236 million, or 78 cents a share, in the fiscal fourth quarter, which ended May 31, compared with $113 million, or 38 cents a share, a year earlier. Analysts had predicted that the Memphis-based shipper would earn between 71 and 82 cents a share.

Revenue in the quarter rose 6% from a year earlier to $5.42 billion.

FedEx said it expects to earn 40 cents to 50 cents per share in the first quarter, below the average estimate of 54 cents a share from analysts surveyed by Thomson First Call. Analysts have attributed the gains at FedEx in part to a new contract for carrying U.S. mail and to diversions of some loads from UPS, which is now negotiating a contract for 230,000 drivers, package handlers and other members of the Teamsters. A strike against UPS in 1997 lasted 15 days. Both sides have repeatedly reported progress in the current talks. The UPS labor contract runs out on July 31.