FedEx Corp. Increases Earnings Outlook
July 26, 2010 09:00 AM Eastern Daylight Time
Better-Than-Expected Growth in Express and Ground Volumes Drives Revenue and Earnings Improvements
MEMPHIS, Tenn.--FedEx Corporation (NYSE: FDX) today announced that it expects earnings to be in the range of $1.05 to $1.25 per diluted share for the first quarter ending August 31, up 81% to 116% from $0.58 per diluted share a year ago. The company’s previous guidance for the quarter was $0.85 to $1.05 per diluted share.
“Our revenue and earnings growth are exceeding original expectations, primarily due to better-than-anticipated growth in FedEx Express and FedEx Ground volumes”
With the improved outlook, FedEx is also planning to fully restore the company match for 401(k) plans at all FedEx companies effective January 1, 2011. The cost of this restoration is included in the company’s earnings outlook.
Mr. Graf went on to say that FedEx is so pleased with the pilot group and are honestly sorry for initiating the 4a2b section of the contract, that they are going to give them an immediate 10% pay raise. The company also guaranteed that contract negotiations would be complete by the end of the year.