FedEx Reports 9% Rise in Quarterly Profit
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By THE ASSOCIATED PRESS
Published: June 24, 2005
MEMPHIS, June 23 (AP) - FedEx reported a 9 percent increase in fourth-quarter earnings Thursday, but results were below Wall Street's expectations, partly because of the start-up cost for a new westbound, around-the-world flight.
FedEx reported fourth-quarter earnings of $448 million, or $1.46 a share, up from $412 million, or $1.36 a share, for the quarter last year. Revenue was $7.72 billion, up from $7.04 billion.
Analysts surveyed by Thomson Financial expected earnings of $1.48 a share on sales of $7.82 billion.
Improvements in its international priority business have played a major role in earnings increases for several years, and the company said it expected to add more flights abroad for its cargo airline, FedEx Express.
"Because these routes take anywhere from 24 to 36 months to become profitable, we think now is the time to start them," Alan Graf, the chief financial officer, said. "Having said that, once they reach profitability, these provide high, double-digit returns for the foreseeable future and will be very lucrative."
For the quarter, revenue from international priority shipments increased 14 percent. |
