Growth in international express package shipments and effective yield management on the domestic air transportation front played key roles in FedEx Corp.'s strong fiscal third quarter ended Feb. 28, resulting in net income of $428 million, up 35% from the year-ago quarter's $317 million profit."Earnings for our third quarter were better than forecasted due to a stronger-than-expected holiday peak season for FedEx Ground, improved productivity in our transportation segments, lower-than-expected fuel costs, deferral of advertising and promotion costs to the fourth quarter and a lower effective tax rate. Our earnings guidance for the fourth quarter, which assumes continued economic growth, reflects a more normal expense trend," Executive VP and CFO Alan Graf Jr. said.
Company revenue increased 9% year-over-year to $8 billion against a 7% rise in expenses to $7.29 billion. Fuel costs climbed 36% to $774 million. Operating income grew 29% to $713 million. For the nine-month period, profit was up 24% to $1.24 billion.
The FedEx Express segment reported a 9% lift in third-quarter revenue to $5.34 billion, a sum accounting for 66.7% of the parent company's total turnover. FedEx Express expenses came to approximately $4.89 billion, an increase of 7%, and operating profit grew 31% to $446 million. Operating margin rose 1.5 points to 8.4% owing to "solid growth" in International Priority and US Overnight revenue, yield management and productivity, according to the company.
Daily volume increased 5% to 11.8 million lb., driven by 17% growth in international shipping to 2.8 million lb. per day. Nine-month revenue climbed 10% to $15.83 billion as expenses rose 9% to $14.63 billion and operating income surged 23% to $1.21 billion.
ATW
Company revenue increased 9% year-over-year to $8 billion against a 7% rise in expenses to $7.29 billion. Fuel costs climbed 36% to $774 million. Operating income grew 29% to $713 million. For the nine-month period, profit was up 24% to $1.24 billion.
The FedEx Express segment reported a 9% lift in third-quarter revenue to $5.34 billion, a sum accounting for 66.7% of the parent company's total turnover. FedEx Express expenses came to approximately $4.89 billion, an increase of 7%, and operating profit grew 31% to $446 million. Operating margin rose 1.5 points to 8.4% owing to "solid growth" in International Priority and US Overnight revenue, yield management and productivity, according to the company.
Daily volume increased 5% to 11.8 million lb., driven by 17% growth in international shipping to 2.8 million lb. per day. Nine-month revenue climbed 10% to $15.83 billion as expenses rose 9% to $14.63 billion and operating income surged 23% to $1.21 billion.
ATW
