FedEx operating profit up 1%, earnings below expectations

FedEx revenue up 3% - financial highlights for three months ended 31-Aug-2012:

• Revenue: USD10,792 million, +3% year-on-year;
  • FedEx Express: USD6632 million, +1%;
  • FedEx Ground: USD2462 million, +8%;
  • FedEx Freight: USD1399 million, +5%;
  • FedEx Services: USD389 million, -5%;
• Operating costs: USD10,050 million, +3%;
  • Labour: USD4103 million, +2%;
  • Purchased transportation: USD1680 million, +11%;
• Operating profit: USD742 million, +1%;
  • FedEx Express: USD207 million -28%;
  • FedEx Ground: USD445 million, +9%;
  • FedEx Freight: USD90 million, +114%;
• Net profit: USD459 million, -1%;
• Capital expenditure: USD972 million, -12%;
• Total assets: USD30,691 million, +2.6% when compared to period ended 31-May-2012;
• Cash and cash equivalents: USD2743 million, -3.5% when compared to period ended 31-May-2012;
• Total liabilities: USD15,667 million, +3.2% when compared to period ended 31-May-2012;
• 2QFY2013 forecast:
  • Earnings per diluted share: USD1.30 to USD1.45;
• FY2013 forecast:
  • Earnings per diluted share: USD6.20 to USD6.60. [more - original PR]

FedEx: "Earnings for the first quarter were below our expectations as weak global economic conditions dampened revenue growth, drove a shift by our customers to our deferred services and outpaced our near-term ability to reduce FedEx Express operating costs to match demand levels. We plan to provide additional information on our forecast and long-term opportunities at our Investors and Lenders Meeting on October 9-10 in Memphis," Alan Graf, executive vice president and CFO. Source: Company statement, 18-Sep-2012.