FedEx reports $303 million in fourth quarter net income

Washington DC
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FedEx reports net income across all of its business segments of $303 million for the fourth quarter of its 2013 fiscal year ending 31 May, which was down 45% from the same period a year earlier.

The Memphis-based freight and logistics company saw revenues climb to $11.4 billion during the period, up from $11 billion during the same period last year, while operating income declined to $502 million from $856 million year-over-year.

For the full year ending in May, the company earned net income of $1.56 billion, which was down from $2.03 billion during fiscal year 2012.

FedEx reports that its FedEx Express segment took in revenue of $6.98 billion during the fourth quarter, up 3% year-over-year. Adjusted operating income was up 11% to $460 million.

Including charges, however, the segments had no operating income during the period. The FedEx Express segment reported adjusted operating income of $281 million during the fourth quarter last year.

The company says in a media release that operating income and margin improved despite a shift in demand to lower-yielding international services. It notes capacity reductions and other cost reduction measures improved the quarterly results.

Direct costs associated with business realignment programs and aircraft impairment charges impacted operating income and margin by $460 million.

"FedEx Ground posted another strong year and FedEx Freight margins continued to improve," says Frederick Smith, chairman, president and chief executive of FedEx, in the media release. "These positive developments did not fully offset tepid economic growth and customer preference for less costly international shipping services. FedEx Express results improved in the fourth quarter, and while near-term challenges remain, we are confident we are positioning FedEx for profitable, long-term growth."