FedEx Posts Strong Earnings

March 17, 2004
FedEx Corp. today released its earnings report for the quarter ended Feb. 29, stating that operating income rose 38% to $372 million over the same period last year. This increase is attributed to cost cuts and an improved world economy, the company said. FedEx’s air transport arm, FedEx Express, has netted $4.37 billion in revenues— a 7% increase over the same quarter last year. Operating income improved

FedEx Corp. today released its earnings report for the quarter ended Feb. 29, stating that operating income rose 38% to $372 million over the same period last year. This increase is attributed to cost cuts and an improved world economy, the company said.

FedEx’s air transport arm, FedEx Express, has netted $4.37 billion in revenues— a 7% increase over the same quarter last year. Operating income improved dramatically which earned $218 million— a 68% jump. This is a result of cost cutting efforts including early retirement and severance savings.

FedEx Express delivers an average of 3,221 packages daily, which accounts for 58.4% of total packages delivered. Overall volume for FedEx’s air delivery increased only 1%, while average revenue per package increased to $18.43 (6%).

FedEx Ground has also grown, with an 8% increase in revenue, to $960 million. Operating income showed a more modest growth of 3%, to $112 million. These increases indicate that it is keeping pace with its volume growth, which increased 6%, to 2,296 packages delivered per day. FedEx Ground accounts for 41.6% of packages delivered per day. Each ground package earns average revenues of $6.52 per package— a 4% increase.

The Freight segment has also shown strong growth, with revenues of $630 million— up 11%. Operating income took a 32% jump, to $37 million. The sharp increase is attributed to higher revenue and cost-cutting efforts.

“Our revenue growth accelerated, reflecting a strengthening worldwide economy and a successful execution of our business strategy,” said Alan B. Graf Jr., FedEx executive vp and CFO.

Sponsored Recommendations

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

How Electric Vehicles Help You Prolong the Life of Your Fleet

Before adopting electric vehicles for commercial/government fleets, prioritize cost inquiries. Maintenance is essential; understand the upkeep of EV fleets. Here’s what you need...

Voice your opinion!

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