• Winter hammers FedEx profits and revenues

    FedEx Corp. said earnings for the third quarter of its fiscal year took a severe beating due largely to severe winter weather In the U.S. and Europe that significantly disrupted its global shipping operations
    Feb. 16, 2011
    2 min read

    FedEx Corp. said earnings for the third quarter of its fiscal year took a severe beating due largely to severe winter weather In the U.S. and Europe that significantly disrupted its global shipping operations.

    “We experienced significant network disruptions in the U.S. and Europe and unusually high costs from severe winter storms,” said Alan Graf, Jr., FedEx executive vp & CFO, in an earnings guidance update. “In addition, fuel prices continued to escalate since we provided our earnings outlook in December,” he added. “However, we continue to see strength in our base business across all transportation segments and geographies.”

    FedEx estimated it will suffer a 25-cent per diluted share loss of revenue and increased expenses resulting from severe winter storms and higher-than-expected fuel prices. Therefore, it now expects earnings to range from 70 to 90 cents per diluted share for its third fiscal quarter – excluding combination costs within its FedEx Freight LTL subsidiary – as opposed to the 95 cents to $1.15 in earnings per share it previously forecast.

    The company stressed this guidance assumes no further weather impact and stable fuel prices for the remainder of the quarter -- but noted these costs will also impact earnings guidance for its full fiscal year.

    Voice your opinion!

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

    Sign up for our free eNewsletters

    Latest from Operations

    4126654 | Phartisan | Dreamstime.com
    driver retention
    Turnover and its causes are expenses we like to ignore or accept as the cost of running a trucking company. In a market like today’s, investing in retention doesn’t mean spending...
    Brakebush Transportation
    Brakebush Transportation was awarded the 2025 FleetOwner Private Fleet of the Year Award, sponsored by Descartes, for midsize operations.
    Members Only
    Leaders of Brakebush Transportation, a century-old family business, share some of their innovative strategies and deep commitments to drivers that earned their operation FleetOwner...
    Schneider
    schneider 90th anniversary
    Schneider hosted an anniversary event, honoring a legacy that began in 1935 and grew to 12,500 trucks today.