FedEx's Third Quarter Profit Down More Than 30 Percent
JOC Staff | Mar 20, 2013 10:52AM EDT
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FedEx today reported net income in the third quarter of fiscal year 2013, ending Feb. 28, 2013, totaled $361 million, dropping 31 percent from $521 million in the same quarter in the previous year.
The U.S. global courier delivery services company said profit was negatively impacted by an accelerating demand shift toward lower-yielding international services, lower international export yields and fewer operating days in each transportation segment, as well as business realignment costs totaling $47 million related to the company’s voluntary buyout program for eligible U.S. officers and managing directors.
“Our lower-than-expected results for the quarter and reduced full-year earnings outlook were driven by third quarter international revenue declining approximately $100 million versus our guidance, primarily due to accelerating customer preference for lower-yielding international services, lower rate per pound and weight per shipment,” said Alan B. Graf Jr., FedEx’s executive vice president and CFO, in a written statement.
Meanwhile, total quarterly revenue was $11 billion, increasing 4 percent from $10.6 billion in the same quarter in fiscal year 2012. For the FedEx Express segment, revenue was $6.7 billion, up 2 percent from last year’s $6.5 billion. FedEx Ground reported revenue rose 11 percent from $2.5 billion to $2.8 billion. Revenue for the FedEx Freight division was $1.2 billion, relatively stable year-over-year.
2 comments:
Now is this 2.8 billion after they pay their non-employees basically to run the Ground and Home division?
FedEx is not just falling behind due to the economy. The treatment of employees is so horrific that the 'real' quartely returns are only goint to get worse. Treat employees poorly = bad output = bad service = bad product. FedEx needs to return to what it represented years ago. Put the people first in the PSP and the people will be happy. Happy = productive employee. This is the most basic of people economy. Unhappy, mistreated employees will never provide good performance as it was in earlier years at FedEx. I simply can't understand what part of such a simple equation is Fred Smith missing.
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