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

Voice your opinion!

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

Sponsored Recommendations

Leveraging telematics to get the most from insurance

Fleet owners are quickly adopting telematics as part of their risk mitigation strategy. Here’s why.

Reliable EV Charging Solution for Last-Mile Delivery Fleets

Selecting the right EV charging infrastructure and the right partner to best solve your needs are critical. Learn which solution PepsiCo is choosing to power their fleet and help...

Overcoming Common Roadblocks Associated with Fleet Electrification at Scale

Fleets in the United States, are increasingly transitioning from internal combustion engine vehicles to electric vehicles. While this shift presents challenges, there are strategies...

Report: The 2024 State of Heavy-Duty Repair

From capitalizing on the latest revenue trends to implementing strategic financial planning—this report serves as a roadmap for navigating the challenges and opportunities of ...