Business Briefing: Winter Storms Hurt Results for Fedex

Posted by Unknown on Wednesday, March 19, 2014

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Business Day |Winter Storms Hurt Results for Fedex

http://nyti.ms/1g2OGMO

Business Day |Business Briefing

FedEx says its latest quarterly profit rose 5 percent from a year ago despite storms that raised the companyâ€™s costs, but the results were below analystsâ€™ expectations. The companyâ€™s ground-shipping segment is doing better, but the express delivery business is flat and customers continue to shift to slower, cheaper services for international shipments. The company said on Wednesday that net income in the quarter that ended Feb. 28 rose to $378 million, or $1.23 a share, from $361 million, or $1.13 a share, a year ago. Analysts surveyed by FactSet had expected $1.45 a share. Revenue rose 3 percent to $11.30 billion, from $11 billion, missing Wall Streetâ€™s forecast of $11.43 billion. Snow, ice and freezing temperatures slowed the companyâ€™s trucks and planes and raised costs for things as diverse as de-icing and overtime. â€œThe biggest challenge is the fact that so much of the business comes in such a short period of time, and obviously it is not possible to make these enormous capital investments for two or three weeks out of the year,â€ Frederick W. Smith, FedExâ€™s chairman and chief executive, said in a conference call with analysts. â€œYou can clearly go broke trying to deliver noncompensatory packages into peopleâ€™s homes.â€

A version of this brief appears in print on March 20, 2014, on page B2 of the New York edition with the headline: Winter Storms Hurt Results For Fedex .