My Account Menu

CAPA Login


Register to trial CAPA Membership!

FedEx upgrades FY2011 guidance despite declining profits in 2QFY2011

17-Dec-2010 11:26 AM

FedEx revenue up 12% - financial highlights:

  • Three months ended 30-Nov-2010:
    • Revenue: USD9632 million, +12% year-on-year;
      • FedEx Express: USD592 million, +13%;
      • FedEx Ground: USD2077 million, +13%;
      • FedEx Freight: USD1221 million, +14%;
      • FedEx Services: USD434 million, -7%;
    • Operating costs: USD9163 million, +14%;
    • Operating profit (loss): USD469 million, -18%;
      • FedEx Express: USD264 million, -23%;
      • FedEx Ground: USD296 million, +24%;
      • FedEx Freight: (USD91 million), compared to a loss of USD12 million in p-c-p;
    • Profit before tax: USD437 million, -20%;
    • Net profit: USD283 million, -18%;
    • Capital expenditure: USD1047 million, +57%;
  • Six months ended 30-Nov-2010:
    • Revenue: USD19,089 million, +15%;
      • FedEx Express: USD11,904 million, +16%;
      • FedEx Ground; USD4038 million, +13%;
      • FedEx Freight: USD2479 million, +21%;
      • FedEx Services: USD849 million, -7%;
    • Operating costs: USD17,992 million, +14%;
    • Operating profit (loss): USD1097 million, +24%;
      • FedEx Express: USD621 million, +38%;
      • FedEx Ground: USD583 million, +30%;
      • FedEx Freight: (USD107 million), compared to a loss of USD10 million in p-c-p;
    • Profit before tax: USD1040 million, +24%;
    • Net profit: USD663 million, +26%;
    • Capital expenditure: USD2059 million, +33%;
    • Net operating cash flow: USD2011 million, +48.2%;
    • Total assets: USD26,093 million, +4.8% when compared to period ended 31-May-2010;
    • Cash and cash equivalents: USD1877 million, -3.8% when compared to period ended 31-May-2010;
    • Total liabilities: USD11,532 million, +4.0% when compared to period ended 31-May-2010;
  • 3QFY2011 forecast:
    • Earnings per diluted share: USD0.95 to USD1.15;
  • FY2011 forecast:
    • Earnings per diluted share: USD5.00 to USD5.30;
    • Capital expenditure: USD3500 million. [more]

FedEx: “Our operating performance in the quarter was impacted by strong compensation and benefits headwinds as we reinstated programs curtailed during the recession. During the quarter, we also realised more normalised growth in FedEx International Priority shipments and higher fuel prices than our earnings guidance had assumed. Yield improvement and cost management remain our focus. We expect margins to improve in the second half of fiscal 2011 and in fiscal 2012, as we continue to benefit from solid global demand for our differentiated services and as certain cost headwinds subside next fiscal year,” Alan Graf, Executive Vice President and CFO. Source: FedEx, 16-Dec-2010.