The Guvnor
29th Jun 2001, 11:31
From today's atwonline.com news:
<font face="Verdana, Arial, Helvetica" size="2">Sagging economy hits FedEx earnings
Dateline: Friday June 29, 2001
Lower traffic volumes and $102 million in paper writeoffs associated with the scaling
back of the MD-10 conversion and Ayres Loadmaster single-engine turboprop
programs largely were responsible for a 54% decline in fiscal fourth quarter income at
FedEx Corp.
For the three months ended May 31, net income totaled $113 million, down from $245
million in the year-ago period. Operating revenues rose 6% to $5.12 billion but the
increase was owing entirely to inclusion of revenues from two ground delivery
companies acquired last year. Revenues in the core FedEx Express operation dropped
3% year-over-year to $3.85 billion. Operating expenses, meanwhile, rose 11% to $4.89
billion including the writeoffs as well as a $22 million charge related to the
reorganization of FedEx Supply Services. "Continuing weak economic conditions,
particularly in the high-tech and durable goods sectors, sharply reduced demand for
our express services," said Executive VP and CFO Alan B. Graf.
For the fiscal year ended May 31, FedEx reported income of $584 million, down 15%
compared to $688 million in FY00. Revenues rose 8% to $19.63 billion against a 9%
increase in operating expenses to $18.56 billion. Operating income fell 12% to $1.07
billion from $1.22 billion.
The company said that first-quarter earnings are expected to be considerably below
last year's. To help offset negative revenue trends, it has reduced discretionary
spending, "substantially" reduced bonus compensation related to profitability, delayed
aircraft deliveries and put in place a freeze on most hiring. </font>
<font face="Verdana, Arial, Helvetica" size="2">Sagging economy hits FedEx earnings
Dateline: Friday June 29, 2001
Lower traffic volumes and $102 million in paper writeoffs associated with the scaling
back of the MD-10 conversion and Ayres Loadmaster single-engine turboprop
programs largely were responsible for a 54% decline in fiscal fourth quarter income at
FedEx Corp.
For the three months ended May 31, net income totaled $113 million, down from $245
million in the year-ago period. Operating revenues rose 6% to $5.12 billion but the
increase was owing entirely to inclusion of revenues from two ground delivery
companies acquired last year. Revenues in the core FedEx Express operation dropped
3% year-over-year to $3.85 billion. Operating expenses, meanwhile, rose 11% to $4.89
billion including the writeoffs as well as a $22 million charge related to the
reorganization of FedEx Supply Services. "Continuing weak economic conditions,
particularly in the high-tech and durable goods sectors, sharply reduced demand for
our express services," said Executive VP and CFO Alan B. Graf.
For the fiscal year ended May 31, FedEx reported income of $584 million, down 15%
compared to $688 million in FY00. Revenues rose 8% to $19.63 billion against a 9%
increase in operating expenses to $18.56 billion. Operating income fell 12% to $1.07
billion from $1.22 billion.
The company said that first-quarter earnings are expected to be considerably below
last year's. To help offset negative revenue trends, it has reduced discretionary
spending, "substantially" reduced bonus compensation related to profitability, delayed
aircraft deliveries and put in place a freeze on most hiring. </font>