FDX Corp. delivers positive earnings
By Tiare Rath, CBS MarketWatch
Last Update: 12:52 PM ET Sep 24, 1998
NewsWatch
MEMPHIS, Tenn. (CBS.MW) -- Federal Express' parent company
reported first-quarter earnings ahead of analysts' expectations, but its
profits fell short of results a year ago.
FDX Corp.(FDX) made $149 million, or $1 a
share, in its first quarter. The company's profits fell
below the year-ago quarter's earnings of $165
million, or $1.11 a share, which the company said
included a 25-cent gain from the UPS strike.
Analysts surveyed by First Call estimated the
package carrier would profit 96 cents a share.
The stock advanced 3/4 to 50 3/4, in recent
trading.
The company's revenue grew to $4.1 billion from
$3.9 billion in the year-ago period, a 5 percent
increase. FDX said without the extra business from
last year's 12-day UPS strike, revenue would have
grown 10 percent.
The company's U.S. revenue grew to $2.5 billion
from $2.4 billion. Revenue from international
operations also rose to $920 million from $867 million.
However, international net income, like domestic and total income,
decreased. U.S. operating income fell to $205 million from $241 million,
while international operating income fell to $14 million from $23 million.
"We are addressing the impact of difficult international economic
conditions by aggressively managing costs and reducing capital
expenditures until conditions warrant additional investment," FDX Corp's
Chairman, President and Chief Executive Officer Frederick Smith said in
a statement. "We remain confident that FDX's business strategy is
correct."
The company's small package business-to-business segment, RPS,
reported positive income and revenue growth in the quarter. The division's
operating income rose to $49 million from $34 million and revenue grew
to $441 million from $359 million.
Tiare Rath is a reporter for CBS MarketWatch. |
