FedEx operating margins grow across all transportation segments
23 Mar '06
4 min read
FedEx expects fourth quarter earnings to be $1.65 to $1.80 per diluted share. The company's earnings guidance for the year is now $5.66 to $5.81 per diluted share compared to previous guidance of $5.45 to $5.70 per diluted share, which includes the net effect of a $0.15 per share lease accounting charge in the first quarter.
For the third quarter, the FedEx Express segment reported:
- Revenue of $5.34 billion, up 9% from last year's $4.92 billion
- Operating income of $446 million, up 31% from $340 million a year ago
- Operating margin of 8.4%, up from 6.9% the previous year
FedEx Express will begin utilizing three new flight frequencies into China later this month. This will provide the company a total of 26 weekly flights to China, the most of any US-based cargo carrier.
For the third quarter, the FedEx Ground segment reported:
- Revenue of $1.36 billion, up 14% from last year's $1.20 billion
- Operating income of $187 million, up 26% from $149 million a year ago
- Operating margin of 13.7%, up from 12.4% the previous year
For the third quarter, the FedEx Freight segment reported:
- Revenue of $848 million, up 14% from last year's $747 million
- Operating income of $73 million, up 35% from $54 million a year ago
- Operating margin of 8.6%, up from 7.2% the previous year
For the third quarter, the FedEx Kinko's segment reported:
- Revenue of $501 million, up slightly from last year's $499 million
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