MEMPHIS, Tenn. July 26, 2010… FedEx Corporation (NYSE: FDX) today announced that it expects earnings to be in the range of $1.05 to $1.25 per diluted share for the first quarter ending August 31, up 81% to 116% from $0.58 per diluted share a year ago. The company’s previous guidance for the quarter was $0.85 to $1.05 per diluted share.
For the full year, FedEx expects earnings per diluted share of $4.60 to $5.20, up from $4.40 to $5.00, which reflects the current market outlook for fuel prices and a continued moderate recovery in the global economy. The company reported earnings of $3.76 per diluted share last year.
“Our revenue and earnings growth are exceeding original expectations, primarily due to better-than-expected growth in FedEx Express and FedEx Ground volumes,” said Alan B. Graf Jr., FedEx Corp. executive vice president and chief financial officer. “Our package volume growth rates in our first quarter are continuing at a pace similar to our fourth quarter.” Of particular benefit to our earnings is the continued strong demand for our higher-margin FedEx International Priority (IP) package and freight services, with IP package volumes expected to grow more than 20% again this quarter. Customers are favorably responding to our superior service offerings, the capabilities of our unparalleled global network and the best-in-market cut-off times we now offer from numerous points in Asia.”
With the improved outlook, FedEx is also planning to fully restore the company match for 401(k) plans at all FedEx companies effective January 1, 2011. The cost of this restoration is included in the company’s earnings outlook.
FedEx will release the details of its first quarter results on September 16, 2010.
Corporate Overview
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $35 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 280,000 team members to remain “absolutely, positively” focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit news.fedex.com.
Certain statements in this press release may be considered forward-looking statements, such as statements relating to management’s views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate, legal challenges or changes related to FedEx Ground’s owner-operators, new U.S. domestic or international government regulation, the impact from any terrorist activities or international conflicts, our ability to effectively operate, integrate and leverage acquired businesses, changes in fuel prices and currency exchange rates, our ability to match capacity to shifting volume levels and other factors which can be found in FedEx Corp.'s and its subsidiaries’ press releases and filings with the SEC.