FedEx first quarter growth led by International Economy service

FedEx Corp reported a year-on-year improvement for the first quarter yesterday. Consolidated results showed a 2% increase in total revenue from $10.8 to $11 billion and a 7% rise in operating income from $742 million to $795 million. FedEx CEO Frederick Smith said overall growth in demand was the main cause of the company's recent success.

FedEx Express, the parcel delivery division and by far the largest part of the business, saw a slight 0.3% decrease in revenue from $6.63 to $6.61. This was attributed to lower fuel surcharge revenue and one fewer operating day. Nevertheless, operating income for the division was up 14%year-on-year from $207 to $236 million.  

While US domestic volume and revenue was flat, export volume grew 4% - with most of this coming from the lower end delivery services: FedEx International Economy grew 15% while FedEx International Priority saw a slight decline. 

Speaking of the results, CFO Alan Graf Jr. commented,“We remain confident in our full year earnings outlook despite tepid global economic growth. FedEx Express continued to execute on its profit improvement initiatives during our first quarter. We remain focused and are committed to FedEx Express achieving its $1.6 billion operating profit improvement target by the end of fiscal 2016.”

FedEx Ground, the division for day definite delivery across North America, reported an 11% increase in revenue from $2.46 to $2.73 billion, while the FedEx Freight Segment saw a relatively modest revenue increase of 2% from $1.4 to $21.42 billion. 

FedEx team rings NYSE bell and celebrates Free Shipping day

Today is “Free Shipping“ day for many online retail businesses. Last year, online retails sales reached a staggering $1 billion in revenue on this particular day. This year $29.3 billion have already been generated during the holiday season.

Dave Rebholz, president and CEO, FedEx Ground said that the company was “very proud of the people across the entire FedEx network making the holiday happen. Their commitment and efforts are ensuring we seamlessly deliver Christmas during our busiest season ever.” 

FedEx services have enabled many online retailers to have their products delivered quickly and safely – just in time for Christmas. For this season FedEx team members have been given the honour to ring the bell at the New York Stock Exchange today.

Source: FedEx

FedEx prepares for early Christmas rush and 280 million shipment high

With the holiday season just around the corner, FedEx is getting for an early peak in shipping volume.

In fact, the US courier company has forecasted its busiest day to be Monday, 10^th December with 19 million shipments being handled by its global network of freight, express and courier staff.

“The continued trend toward record peak volumes is a testament to the strength, speed and reliability of the FedEx Ground and FedEx SmartPost networks,” said Frederick W. Smith, founder and chairman of FedEx.

Compared to the shipping volume generated on 12^th December 2012, FedEx expects 2 million more shipments to be moved through the hands of its Christmas staff this year. This would result in a year-on-year increase of 10 percent.

“FedEx team members from around the globe, 300,000 strong, are prepared to help drive commerce during the busy holiday season and beyond”, confirmed Smith.

20,000 additional staff will be hired to help with the increased shipping volume. FedEx hopes to move approximately 280 million shipments between Thanksgiving and Christmas through its network.

Source: Post&Parcel / FedEx