FedEx Corp. (NYSE: FDX) today reported earnings of $1.23 per diluted share for the third quarter ended February 28, compared to $1.13 per share last year. Unusually severe winter storms throughout the quarter disrupted operations, decreasing shipping volume and increasing costs, and impacted year-over-year operating income by an estimated $125 million. Last year’s third quarter results were impacted by business realignment costs totaling $47 million, primarily related to the company’s voluntary buyout program for eligible U.S. officers and managing directors. Excluding the realignment costs, last year’s third quarter earnings were $1.23 per diluted share.
Frederick W. Smith, chairman, president and chief executive officer of FedEx Corp., said he was "very proud of the FedEx team" for delivering outstanding service to customers during the company's third quarter despite severe weather. (Photo: Business Wire)
“Historically severe winter weather significantly affected our third-quarter earnings,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “On days when the weather was closer to normal seasonal conditions, our volumes were solid and service levels were high. The FedEx strategy of maintaining separate express and ground networks with multiple hubs proved to be an especially important advantage for our package customers during this quarter’s severe weather and peak shipping.”
Third Quarter Results
FedEx Corp. reported the following consolidated results for the third quarter:• Revenue of $11.3 billion, up 3% from $11.0 billion the previous year • Operating income of $641 million, up 9% from $589 million last year • Operating margin of 5.7%, up from 5.4% the previous year • Net income of $378 million, up 5% from last year’s $361 million