FedEx EPS $2.10
FedEx Corp. reported the following consolidated results for the first quarter:
Revenue of $11.7 billion, up 6% from $11.0 billion the previous year
Operating income of $987 million, up 24% from $795 million last year
Operating margin of 8.5%, up from 7.2% the previous year
Net income of $606 million, up 24% from last year’s $489 million
Operating income increased primarily due to higher volumes and increased yields at all three transportation segments. Results in the first quarter also include benefits from lower pension expense and the company’s profit improvement programs. These benefits were partially offset by higher aircraft maintenance expense due to the timing of certain engine maintenance events.
During the quarter, the company acquired 5.3 million shares of FedEx common stock. As of August 31, 2014, no shares remained under the existing share repurchase authorizations. Share repurchases benefited earnings in the quarter by $0.15 per diluted share.
FedEx reaffirmed its fiscal 2015 earnings forecast of $8.50 to $9.00 per diluted share. The outlook assumes no net year-over-year fuel impact and continued moderate economic growth. The capital spending forecast for fiscal 2015 remains $4.2 billion. ■