Fedex unsurprisingly met their recently upgraded expectations this morning, reporting 58 cents per share for its fiscal first quarter of 2010.
The company said it sees signs of improvement in the economy, and will hike its US domestic and export rates by 5.9% starting in January (though also reducing fuel surcharges by ~2%).
Notably, volume declines for the FedEx Express segment appear to have stabilised in the most recent quarter. The company reported that International Priority volumes came in better than they had expected (only slightly down) while US Domestic volume actually grew slightly. The company’s operating statistics can be found here.
Still, overall company revenue was down 20% due to lower revenue per package, and operating margin shrunk to 3.9% from 6.3% year over year. Nevertheless, the company’s balance sheet remains very strong, with low debt, and it hasn’t lost money going back at least fifteen years.
They still see difficult year over year comparisons ahead, but appear optimistic that the worst is behind them.
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