OREANDA-NEWS. FedEx Corp. reported earnings of USD 1.53 per diluted share for the first quarter ended August 31, compared to USD 1.45 per share last year.

“Growth in overall demand for our broad global portfolio of solutions drove our improved first quarter results,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer.  “FedEx Express remains focused on reducing costs while facing challenging global economic conditions.  Meanwhile, FedEx Ground continues to generate strong profitability on growing customer demand for its services.”

FedEx Corp. reported the following consolidated results for the first quarter:
* Revenue of USD 11.0 billion, up 2% from USD 10.8 billion the previous year
* Operating income of USD 795 million, up 7% from USD 742 million last year
* Operating margin of 7.2%, up from 6.9% the previous year
* Net income of USD 489 million, up 7% from last year’s USD 459 million

Revenue and earnings increased during the quarter, driven by solid performance at each of the company’s transportation segments.  Results include significant headwinds from the net year-over-year impact from the timing lag that exists between when fuel prices change and indexed fuel surcharges automatically adjust, as well as one fewer operating day.

FedEx reaffirmed its forecast of full-year earnings per share growth of 7% to 13% from last year’s adjusted results.  This outlook assumes the market outlook for fuel prices, U.S. GDP growth of 2.1% and world GDP growth of 2.6%.  The capital spending forecast for fiscal 2014 remains USD 4 billion.