FedEx's Third Quarter Profit Down More Than 30 Percent
JOC Staff | Mar 20, 2013 10:52AM EDT
FedEx today reported net income in the third quarter of fiscal year 2013, ending Feb. 28, 2013, totaled $361 million, dropping 31 percent from $521 million in the same quarter in the previous year.
The U.S. global courier delivery services company said profit was negatively impacted by an accelerating demand shift toward lower-yielding international services, lower international export yields and fewer operating days in each transportation segment, as well as business realignment costs totaling $47 million related to the company’s voluntary buyout program for eligible U.S. officers and managing directors.
“Our lower-than-expected results for the quarter and reduced full-year earnings outlook were driven by third quarter international revenue declining approximately $100 million versus our guidance, primarily due to accelerating customer preference for lower-yielding international services, lower rate per pound and weight per shipment,” said Alan B. Graf Jr., FedEx’s executive vice president and CFO, in a written statement.
Meanwhile, total quarterly revenue was $11 billion, increasing 4 percent from $10.6 billion in the same quarter in fiscal year 2012. For the FedEx Express segment, revenue was $6.7 billion, up 2 percent from last year’s $6.5 billion. FedEx Ground reported revenue rose 11 percent from $2.5 billion to $2.8 billion. Revenue for the FedEx Freight division was $1.2 billion, relatively stable year-over-year.