Thursday, December 20, 2007
FedEx Announces Lower Earnings
Posted by John Branston on Thu, Dec 20, 2007 at 4:00 AM
The company earned $1.54 per share for the second quarter ended November 30th, compared to $1.64 per share a year ago.
Revenue was $9.45 billion, up 6 percent from the previous year. Operating income of $783 million was down 7 percent, net income of $479 million was down 6 percent, and operating margin of 8.3 percent was down from 9.4 percent.
Total combined average daily package volume in the FedEx Express and FedEx Ground segments grew 8 percent year over year for the quarter, due to growh in ground and international priority shipments.
For the third quarter, FedEx expects earning to be $1.15 to $1.30 per share, compared to $1.35 per share a year ago. The capital spending forecast has been reduced from $3.5 billion to $3.1 billion, "with additional reductions possible as management continues to review the timing of capital outlays," the company said in a press release.
Following the announcement of earnings, FedEx stock was lower on Thursday by just over $1 to $93 a share, which is near its 52-week low of $91.
--John Branston
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