Wednesday, April 4, 2012

FedEx Freight Reports

For the third quarter, the FedEx Freight segment reported:

Revenue of $1.23 billion, up 10% from last year's $1.12 billion

Operating loss of $1 million, compared with an operating loss of $110 million a year ago

Operating margin of (0.1%), up from (9.8%) the previous year

Less-than-truckload (LTL) yield increased 6% due to higher LTL fuel surcharges and base yield improvement. LTL average daily shipments increased 2% reflecting sequential improvement during the quarter and favorable comparisons due to severe winter weather in the prior year.

The operating results in the quarter improved significantly as a result of the positive impacts from higher yield and volume, milder winter weather, one additional business day, and ongoing improvements in operational efficiencies. In the prior year quarter, the segment incurred one-time costs of $43 million due to the January 30, 2011 combination of the FedEx Freight and FedEx National LTL operations.

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