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
    • Parcel Forum 2022
    • 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
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » FedEx posts positive results in fiscal third quarter; ground margins gain
newsworthy

FedEx posts positive results in fiscal third quarter; ground margins gain

March 21, 2018
DC Velocity Staff
No Comments

FedEx Corp. reported positive fiscal 2018 third quarter results late yesterday, with improving margins in its "FedEx Ground" ground-delivery operations offsetting somewhat flat results in its core "FedEx Express" air and international segment.

The company's ground parcel unit posted revenue of $5.2 billion, an 11-percent increase from the year-earlier period. The unit's operating margin was 12.1 percent, compared to an 11-percent operating margin in the fiscal 2017 period. Analysts have voiced concerns about margin growth at the unit in the wake of high capital expenditures to build the capabilities needed to handle expected surges in e-commerce shipments in the years ahead.

Jack Atkins, an analyst for the investment firm Stephens Inc., said in a note that FedEx Ground's margins "appear to have turned a corner," and noted that overall the company has moderated its capital spending activity. The company's capital expenditure forecast of $5.8 billion for 2018 is $100 million less than previously projected.

FedEx Express posted revenue of $9.37 billion, a 9-percent increase from the year-earlier period. Operating income dropped to $510 million, from $610 million in the prior-year quarter. Operating margins dropped to 5.4 percent from 7.1 percent. The numbers excluded the costs in both periods for the integration of parcel carrier TNT Express, which FedEx acquired in 2015. The deal closed in 2016.

Revenue at FedEx Freight, the company's less-than-truckload (LTL) unit, rose 14 percent to $1.69 billion. Operating income soared 34 percent, and operating margin rose 0.5 percent, to 3.2 percent. Daily volumes increased 6 percent, while revenue per shipment increased 8 percent.

Transportation Parcel & Postal Carriers
KEYWORDS FedEx
  • Related Articles

    USPS faces double-edged sword as it posts strong fiscal third-quarter gains in package revenue

    UPS posts solid first-quarter results, buoyed by change in U.S. ground pricing

    FedEx posts strong fiscal Q4 results

Recent Articles by DC Velocity Staff

Companies to grow investments in energy-transition solutions, emissions reduction

Cargo imports forecast to sink near three-year low in February

Air cargo demand slumped in 2022 after “extraordinary” levels in 2021

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

Report Abusive Comment

Most Popular Articles

  • Schneider welcomes first battery-electric truck

  • Fred Smith is not worried about Amazon

  • RJW LOGISTICS GROUP EXPANDS RETAIL LOGISTICS OPERATION TO DALLAS

  • Researchers: Ships can look to Mother Nature for energy-saving ideas

  • Maersk deploys indoor drones for warehouse inventory counts

Now Playing on DCV-TV

C8c3bc6b a91d 4181 a18f 35f288257630

ACPaQ: Fast and reliable automated mixed case palletizer

DCV-TV 4: Viewer Contributed
Fully Automated Mixed Case Palletizing ACPaQ is a universally applicable solution for fully automated order picking of mixed case pallets based on customers‘ requirements. Its software allows you to customize the palletizing order to increase efficiency during in-store replenishment. The mixed case palletizer...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

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

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing