I'm having flashbacks to 2000-2001. When companies were warning one after another, but the economy was supposed to improve "in a few month for sure".
Here is the release.
FedEx Corp. Fourth Quarter Net Income Increases 7 Percent
Wednesday June 20, 7:34 am ET
FedEx Ground Segment Revenue Grows 12 Percent
MEMPHIS, Tenn.--(BUSINESS WIRE)--FedEx Corporation (NYSE: FDX - News) today reported earnings of $1.96 per diluted share for the fourth quarter ended May 31, compared to $1.82 per diluted share a year ago. The quarter's results include a gain from a settlement with Airbus related to the A380 order cancellation, which had a net benefit to earnings of approximately $0.06 per diluted share.
"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."
Fourth Quarter Results
FedEx Corp. reported the following consolidated results for the fourth quarter:
* Revenue of $9.15 billion, up 8% from $8.49 billion the previous year
* Operating income of $1.01 billion, up 9% from $927 million a year ago
* Operating margin of 11.1%, up from 10.9% the previous year
* Net income of $610 million, up 7% from last year's $568 million
Total combined average daily package volume at FedEx Express and FedEx Ground grew approximately 4% year over year for the quarter, led by continued growth in ground and international express shipments. Shipment volumes and revenues at FedEx Express, FedEx Ground and FedEx Freight were lower than anticipated in the fourth quarter due to the softer economy.
Full Year Results
FedEx Corp. reported the following consolidated results for the full year:
* Revenue of $35.2 billion, up 9% from $32.3 billion the previous year
* Operating income of $3.28 billion, up 9% from $3.01 billion a year ago
* Operating margin of 9.3%, unchanged from 9.3% the previous year
* Net income of $2.02 billion, up 12% from last year's $1.81 billion
* Earnings per share of $6.48, up 11% from $5.83 per share a year ago
Revenue grew due to strong FedEx Ground volume growth, as well as continued FedEx Express International Priority revenue growth. Revenue growth also reflected the acquisition of Watkins Motor Lines in September 2006. Fiscal 2007 results included costs associated with upfront compensation and benefits under the new pilot labor contract at FedEx Express, which reduced second quarter earnings by approximately $0.25 per diluted share. Fiscal 2006 results included a charge of $0.15 per diluted share to adjust the accounting for certain facility leases, primarily at FedEx Express. Capital spending for fiscal 2007 was $2.9 billion.
Outlook
FedEx expects earnings to be $1.45 to $1.60 per diluted share in the first quarter of fiscal 2008 and $7.00 to $7.40 per diluted share for the full year, assuming an improvement in the U.S. economy beginning in the late summer or early fall. Earnings growth is expected to be below the company's long-term 10% to 15% earnings growth target due to continued soft economic growth and to planned investments to expand the company's networks and broaden its service offerings. Capital spending for fiscal 2008 is forecast to be approximately $3.5 billion, of which approximately 70% is targeted for growth.
http://biz.yahoo.com...05550.html?.v=1
Edited by ogm, 20 June 2007 - 07:01 AM.
