FedEx profits rise 33pc

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FedEx produced an operating profit of $3.2bn last year – up 33 per cent on 2011, while sales were up 8.6 per cent to $42.7bn.

During the quarter FedEx Express permanently retired from service 18 Airbus A310-200 aircraft and 26 related engines, as well as six Boeing MD10-10 aircraft and 17 related engines. This resulted in a non-cash impairment charge of $134 million.

“FedEx delivered strong earnings results for fiscal 2012 due to the outstanding performance by FedEx Ground, our new value proposition at FedEx Freight and improved yields across all transport segments,” said chairman, president and chief executive officer Fred Smith.

“In fiscal 2013, we will continue our focus on improving our operating efficiencies and our financial performance across all of our businesses, while simultaneously enhancing our service capabilities. We remain absolutely committed to higher earnings, margins, cash flows and returns,” said Smith.

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