Package delivery giant FedEx Corp. (FDX) reported a significant drop in fourth-quarter net income to $303 million, or $0.95 per share, from $550 million, or $1.73 per share, last year. Excluding a $0.98 per share business realignment program charge and a prior announced $0.20 per share noncash aircraft impairment charge at FedEx Express, quarterly non-GAAP earnings totaled $679 million, or $2.13 a share. On average, 29 analysts polled by Thomson Reuters expected earnings per share of $1.96 for the quarter. Analysts' estimates typically exclude one-time items.
The firm clocked revenues of $11.4 billion for the recent quarter, compared with the prior year's $11.0 billion, while 22 analysts estimated revenues of $11.44 billion.
Looking ahead, FedEx updated its earnings guidance practices to focus on annual projections with quarterly updates. For fiscal 2014, the company projects earnings per share growth of 7% to 13% from fiscal 2013 adjusted results, assuming the current market outlook for fuel prices, U.S. GDP growth of 2.3% and world GDP growth of 2.7%. Capital spending for fiscal 2014 is likely to be nearly $4 billion.
During October, the company announced profit improvement programs, including a voluntary employee separation program. The program was completed during the fourth quarter, and about 3,600 employees would voluntarily leave the company in phases to ensure a smooth transition. Nearly 40% of the employees vacated their positions on May 31, 2013 in the first phase, while around 25% of the employees would vacate their positions in the final phase at the end of fiscal 2014.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.