FedEx reports 7 percent rise in Profit
FedEx Corp. has reported 7 percent increase in first quarter profit. The company reported net income during quarter ending August 30 at $489 million compared to $459 during same quarter last year.
The Memphis, Tennessee based company reported higher than expected profit of $1.53 per share compared to analyst estimate of $1.50 per share. FedEx reported strong performance at almost all transport segments. The company also shifted focus from air shipments to ground deliveries.
Additionally, the $1.7 billion cost-cutting plan helped the company to report better margins. The company also eliminated 3600 jobs during restructuring. FedEx reported that many consumers want lower shipping cost and do not need express shipping. The shift to cheaper delivery options has helped company gain more business. The total sales were higher by 1.9 percent to $11 billion during the quarter under review.
The company has maintained full year profit guidance of 7-13 percent. FedEx also plans to marginally increase the price for FedEx Ground and FedEx Smart Post later this year.
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