FedEx posts quarterly, fiscal year profit gains

FedEx posts quarterly, fiscal year profit gains FedEx Corp. today reported net income of $610 million for its fiscal fourth quarter ended May 31, up 7 percent compared to $568 million in the same period in the last fiscal year.
   The Memphis-based company’s quarterly operating income improved 9 percent to $1.01 billion while revenue for the period increased 8 percent to $9.15 billion.
   For the full 2007 fiscal year, FedEx reported consolidated net income of $2.02 billion, up 12 percent from $1.81 billion. Operating income for the 12-month period was $3.28 billion from $3.01 billion, an increase of 9 percent. Revenue was also up 9 percent to $35.2 billion, compared to $32.3 billion in the previous fiscal year.
   “FedEx delivered solid financial results in fiscal 2007 even though we were restrained by a slowing U.S. economy,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer.
   “The weakened industrial sector is currently limiting demand for transportation services, but we expect the U.S. economy to begin to show modest year-over-year improvement in the late summer to early fall timeframe. We remain optimistic about prospects for global economic growth, and will continue to invest in projects critical to achieving strong long-term financial performance.”
   FedEx expects its earnings growth for fiscal 2008 to be below its long-term 10 percent to 15 percent target due to “continued soft economic growth and planned investments.” Capital spending for fiscal 2008 is forecast to be approximately $3.5 billion, of which approximately 70 percent is targeted for growth, FedEx said.