FedEx Corp. reported $32.3 billion for the fiscal year ended May 31st, up 10% from $29.4 billion the prior year. Operating income reached $3.01 billion, a 22% rise from fiscal 2005.
The company said it expects it “will significantly invest in growth opportunities in fiscal 2007. . .” The company recently announced the acquisition of Watkins Motor Lines for $780 million. It gave no indications where acquisitions might occur, but its capital spending forecast of $2.9 billion targeted 75% for growth.
FedEx Express achieved quarterly revenues of $5.61 billion, up 10%; operating income of $560 million, up 30%; and an operating margin of 10%, up from 8.4%.
The less-than-truckload (LTL) segment, FedEx Freight, reported revenues rose 15% to $973 million. Operating income for the LTL operation was $142 million, up 49%. Operating margins rose to 14.6%, vs. 11.3% the prior year. Yield improved 9%, reflecting incremental fuel surcharges and higher rates. FedEx Freight implemented a 5.95% general rate increase on April 24, 2006. The company said average daily LTL shipments increased 8% year-over-year.
