FedEx reports significant revenue growth
Despite an onslaught of economic challenges, FedEx reported year-on-year growth of 32 percent during its fourth quarter, which ended May 31. Overall revenue also grew significantly during this time period, increasing by 12 percent to $10.55 billion.
Other key areas of growth were operating income and operating margin, rising 28 percent and 8.4 percent, respectively. FedEx said its net income also rose considerably in the fourth quarter, increasing by 33 percent to $558 million.
FedEx subsidiaries FedEx Express, FedEx Ground Segment and FedEx Freight also reported growth in the fourth quarter. Of the three branches, FedEx Ground Segment saw the biggest increases in revenue, up 15 percent from 2010’s earnings of $1.96 billion. Nevertheless, FedEx Express and FedEx Freight posted revenue growth of 13 percent and 6 percent, respectively.
To FedEx Corp. Chairman, President and CEO Frederick W. Smith, these numbers signify good news for the transportation and logistics sector. “During fiscal 2011, an improved economy, strong customer demand and decisive actions to grow our business led to increased volumes and yields across all transportation segments,” he said in a statement.
Smith also remains optimistic about his company’s immediate future. “With this positive momentum, moderate economic growth and subsiding cost headwinds, FedEx is well positioned to deliver strong earnings growth in fiscal 2012,” he said.