FedEx first quarter earnings than expected

FedEx reported first quarter earnings showed recently, thanks to cost cutting, and robust performance of ground transport business, the company net profit year-on-year growth of 6.5%, and is better than market expectations.
FedEx said, plans to start from January 6th next year, the freight company express business in the United States the average increase of 3.9%, and will announce the ground transportation services prices later this year.
By the end of August 31st quarter, the company net profit from a year earlier to $459000000, or $1.45, to $489000000, or $1.53 a share, higher than an FactSet survey of analysts on average expected $1.50.
Company revenue growth of 2%, to $11020000000 from $10800000000 last year, slightly higher than the average analyst forecast of $11000000000. Operating profit margin from the same period last year 6.9% to 7.2%.
The company's express business revenue fell 0.4%, operating profit growth of 14%. In the United States of America package delivery increased by 1%, 4% growth in the volume of overseas delivery.
Ground transportation sector revenue growth of 11%, growth thanks to the home delivery and business services. The Department's operating profit growth of 5.2%.
FedEx said, is expected this fiscal year earnings per share growth will be 7-13%, up to 6.63-7.01 dollars, annual capital expenditure will amount to $4000000000. Analysts on average expected the company's full year earnings per share of $6.97.
FedEx chief financial officer Alan - Graff (Alan Graf) said, the company still full of confidence to the annual profit prospects, despite the global slowdown in economic growth. The company plans to the end of fiscal year 2016 will improve the express business operating profit of $1600000000. Express business constitute the company's total revenue 60%, but the first quarter revenue and flat over the same period last year.
MYEX Minya Express International
2013-09-24