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FedEx operating margins grow across all transportation segments
23 Mar '06
4 min read
FedEx Corporation reported earnings of $1.38 per diluted share for the third quarter ended February 28, compared to $1.03 per diluted share a year ago, a year-over-year increase of 34%.
FedEx reported the following consolidated results for the third quarter:
- Revenue of $8.00 billion, up 9% from $7.34 billion the previous year
- Operating income of $713 million, up 29% from $552 million a year ago
- Operating margin of 8.9%, up from last year's 7.5%
- Net income of $428 million, up 35% from $317 million the previous year
"FedEx continues to deliver strong results by providing outstanding customer service around the world and by crisply executing our strategy of balancing volume and revenue growth with cost containment to improve our margins," said Frederick W. Smith, chairman, president and chief executive officer of FedEx Corp.
"With our broad portfolio of services, FedEx is uniquely positioned to take advantage of continued growth in the global economy."
Total combined average daily package volume at FedEx Ground and FedEx Express grew 4% year over year for the quarter, led by improved ground and international express package growth. Yield management remains a top priority across all transportation services. During the quarter, continued yield management actions in FedEx Express U.S. deferred services boosted yields while resulting in lower U.S. deferred express volume.
FedEx ranked second in FORTUNE magazine's most recent "America's Most Admired Companies" list and fourth in its "World's Most Admired Companies" list. FedEx continues to place in the FORTUNE "100 Best Companies to Work For" list and has the largest employee base on that list.
FedEx reported the following consolidated results for the third quarter:
- Revenue of $8.00 billion, up 9% from $7.34 billion the previous year
- Operating income of $713 million, up 29% from $552 million a year ago
- Operating margin of 8.9%, up from last year's 7.5%
- Net income of $428 million, up 35% from $317 million the previous year
"FedEx continues to deliver strong results by providing outstanding customer service around the world and by crisply executing our strategy of balancing volume and revenue growth with cost containment to improve our margins," said Frederick W. Smith, chairman, president and chief executive officer of FedEx Corp.
"With our broad portfolio of services, FedEx is uniquely positioned to take advantage of continued growth in the global economy."
Total combined average daily package volume at FedEx Ground and FedEx Express grew 4% year over year for the quarter, led by improved ground and international express package growth. Yield management remains a top priority across all transportation services. During the quarter, continued yield management actions in FedEx Express U.S. deferred services boosted yields while resulting in lower U.S. deferred express volume.
FedEx ranked second in FORTUNE magazine's most recent "America's Most Admired Companies" list and fourth in its "World's Most Admired Companies" list. FedEx continues to place in the FORTUNE "100 Best Companies to Work For" list and has the largest employee base on that list.
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