FedEx Raises Its Earnings Outlook
Monday, August 23rd 2004, 11:29 am
By: News On 6
MEMPHIS, Tenn. (AP) _ FedEx Corp. raised its earnings outlook Monday, citing more business for its international, ground delivery and less-than truckload services.
The Memphis-based package delivery company said it expects per share earnings of $1 to $1.10 for the quarter ending Aug. 31, compared with previous estimates of 90 cent to $1, and $4.40 to $4.60 for the year, compared with $4.20 to $4.40.
Analysts surveyed by Thomson First Call had been expecting first quarter earnings of 95 cents per share and annual profits of $4.47.
``Customers are increasingly looking to FedEx to manage a broader range of their transportation and supply chain needs,'' said chief financial officer Alan B. Graf Jr. ``We have strong momentum in our businesses and believe the economy continues on a sustainable expansion path.''
The company acknowledged that prolonged high fuel costs could affect the worldwide economy, but it expects to continue to see strong demand. As a result, FedEx will increase capital investments in its international express, ground and freight networks to between $2 billion and $2.1 billion in the year ending in May 2005.
FedEx previously raised its outlook for the quarter and year in June, when it projected capital expenditures of about $1.6 billion.
The company will release its first quarter earnings report Sept. 22.
FedEx, with annual revenues of $25 billion, provides package delivery, e-commerce and business services. It completed its acquisition of Kinkos, a copy shop chain, in February and announced earlier this month that it is buying Parcel Direct, a shipping consolidator for catalogue and Internet retailers.