FedEx Corp. today, Sept. 20, reported revenue of $9.20 billion for the first quarter ended Aug. 31, up 8 percent from $8.55 billion the previous year. Net income was $494 million, up 4 percent from last year’s $475 million.
“FedEx increased its revenue and earnings against the backdrop of a sluggish U.S. economy,” said Frederick W. Smith, chairman, president and chief executive officer of Memphis, Tenn.-based FedEx Corp. “Outside of the United States, the economy is generally solid, contributing to the growth in our international express shipments. I continue to believe that FedEx will, over the long term, reap the rewards of our strategy of investing in key growth markets and strengthening and expanding our worldwide networks.”
FedEx Corp. also reported first-quarter operating income of $814 million, up 4 percent from $784 million a year ago; and an operating margin of 8.8 percent, down from 9.2 percent the previous year. While operating margin improved in the FedEx Express and FedEx Ground segments, consolidated margin declined due to a lower margin year over year at FedEx Freight and to network investments to increase capacity, improve service quality and increase productivity.
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 growth in ground and international express shipments. The increase in international domestic express shipments resulted primarily from recent international acquisitions.