FedEx Q3FY2019 results below expectations as weaker global trade trends continue

FedEx reported (19-Mar-2019) operating income improved in Q3FY2018/19 (ended 28-Feb-2019) due to lower variable incentive compensation expenses, US volume growth, a favourable net impact of fuel at all transportation segments and increased yields at FedEx Freight and FedEx Ground. Benefits were partially offset by higher costs at FedEx Ground, driven in part by increased purchased transportation rates and the Jan-2019 launch of year round, six day per week operations. FedEx Express international revenue declined as a result of lower yields and unfavourable exchange rates. FedEx Express international and US yields decreased, primarily due to higher growth in lower yielding services and lower weight per shipment. FedEx chairman and CEO Frederick W Smith commented: "Our third quarter financial results were below our expectations and we are focused on initiatives to improve our performance. Our investments in innovation, network infrastructure and automation will increase our competitiveness and drive long-term earnings growth". EVP and CFO Alan B Graf Jr stated: "Slowing international macroeconomic conditions and weaker global trade growth trends continue, as seen in the year-over-year decline in our FedEx Express international revenue". [more - original PR]