FedEx profits down in 3QFY2011

FedEx revenue up 11% - financial highlights for the three months ended 28-Feb-2011:

• Revenue: USD9663 million, +11%;
  • FedEx Express: USD6049 million, +11%;
  • FedEx Ground: USD2184 million, +14%;
  • FedEx Freight: USD1123 million, +8%;
  • FedEx Services: USD397 million, -2%;
• Operating costs: USD9270 million, +12%;
• Operating profit (loss): USD393 million, -6%;
  • FedEx Express: USD178 million, -33%;
  • FedEx Ground: USD325 million, +26%;
  • FedEx Freight: (USD110 million), compared with a loss of USD107 million in p-c-p;
• Net profit: USD231 million, -3%;
• Capital expenditure: USD643 million, +49%;
• Total assets: 26,202 million, +5.2% when compared with the period ended 31-May-2011;
• Cash and cash equivalents: USD1359 million, -30.4%;
• Total liabilities: USD11,322 million, +2.1%. [more]

FedEx: "FedEx projects earnings to be USD1.66 to USD1.83 per diluted share in the fourth quarter and an adjusted USD4.83 to USD5.00 per diluted share for fiscal 2011. Earnings could be affected by the impact of the ongoing political turmoil in the Middle East and North Africa on fuel prices and the economy. Also, the near-term impact of the earthquake and tsunami in Japan on operational costs, shipping patterns and the global economy is currently uncertain. The annual guidance excludes FedEx Freight combination costs and a second quarter legal reserve. Including costs from the FedEx Freight combination and the legal reserve, earnings are expected to be USD4.49 to USD4.66 per diluted share for fiscal 2011. The capital spending forecast for fiscal 2011 remains USD3.5 billion," Company statement. Source: FedEx, 17-Mar-2011.