We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2022
    • Upload Your Video
Home » Weak LTL results mar otherwise solid quarter for FedEx
newsworthy

Weak LTL results mar otherwise solid quarter for FedEx

March 18, 2010
Mark B. Solomon
No Comments

FedEx Corp. Chairman Frederick W. Smith must give thanks each night that his company doesn't depend on the less-than-truckload (LTL) marketplace for its daily bread.

The latest quarterly earnings report from Smith's company showed strong performance for the fiscal third quarter, paced by solid results in its domestic and international air operations. Revenue rose 7 percent year over year to $8.7 billion, while operating and net income soared by 129 percent and 146 percent, respectively, driven by improving demand and what the company termed "strict cost controls."

The Memphis-based company was also bullish on its fiscal fourth-quarter outlook, though it cautioned that a decision to reinstate various employee compensation programs will dampen earnings growth in the quarter and into the new fiscal year.

FedEx's international air-express segment was the quarter's standout. Led by Asian export demand, daily volumes rose 18 percent year over year, while revenues jumped 49 percent. Air package volumes in the domestic United States, long a flat market for air services, rose only 1 percent, while revenues fell slightly, FedEx said. The company's domestic ground parcel business posted revenue gains of 7 percent, volume increases of 5 percent fueled by growing business-to-business demand, and a 32-percent gain in operating income.

The Achilles heel in the quarter was the company's LTL unit, FedEx Freight. While revenue and shipments grew 14 percent and 26 percent, respectively, the unit reported an operating loss of $107 million, a far greater loss than analysts had forecast. LTL yields declined by 8 percent, as the unit, along with its LTL rivals, suffered from the effects of weak pricing and aggressive carrier discounting.

Transportation Air Trucking Less-than-Truckload Parcel & Postal Carriers
KEYWORDS FedEx FedEx Freight
  • Related Articles

    Legal victory, decent fourth-quarter results cap solid week for FedEx

    FedEx to raise 2014 rates on U.S. express traffic; reports solid results for fiscal Q1

    FedEx posts solid Q4, full-year results

Marksolomon
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.

Recent Articles by Mark Solomon

Coming together for road safety: interview with Joshua Girard

Off the rails

Freight rate spikes shaking up the C-suite

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • FedEx agrees to buy 10% stake in Berkshire Grey

  • No vacancy at the warehouse

  • Investment group pays $5.2 billion to buy Amazon air freight contractor Atlas Air

  • The key to successful digital transformation? Your people

  • Rakuten Super Logistics acquired by executive of firm it once bought

Now Playing on DCV-TV

Raymond energy youtube thumbnails 01

Power your future with Raymond energy solutions.

DCV-TV 4: Viewer Contributed
At The Raymond Corporation, we design energy solutions that take your facility from today’s needs to tomorrow’s goals, with a full portfolio of material handling equipment and power sources that are engineered to work together, sharing data so they can be optimized over time. And from identifying the right solutions...

FEATURED WHITE PAPERS

  • Choose the Best Auto ID Technology for Tracking RTIs

  • 8 ways your facility can benefit from Hyster Reaction

  • Why Use RFID to Track RTIs

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing