FedEx profits double

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
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.

About the Author

Tim Parry

Tim Parry is a former FleetOwner editor. 

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