FedEx Conference Call Highlights

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FedEx
FDX
reported its second quarter earnings on Wednesday. Shares of the company are down 4%. Below are some key highlights from its conference call: • FedEx posted strong results and a higher operating margin with earnings up year-over-year at 36% per share with continued growth in volumes and base yields in our transportation segments. • Results also were positively affected by the benefits from our ongoing FedEx Express profit improvement program, which is on track. • We expect revenue and earnings growth to continue into the third quarter and the remainder of 2015, driven by ongoing improvements in the results of our transportation segments. • In Bongo International, we've acquired a leader in global cross-border e-commerce technology and solutions. • Bongo's technology and processes provide a comprehensive end-to-end solution that helps retailers and e-tailers grow by reaching international e-commerce consumers. • Bongo is delivering cross-border enablement solutions to a base of more than 2,000 retailers to more than 200 countries worldwide. • We expect industrial production to grow at 3.9% in calendar 2015. Global economic growth is expected to broaden with the U.S. leading and emerging markets picking up. • We expect global growth of 3% in calendar 2015. • We had a spectacular second quarter as our earnings per share grew 36% to $2.14, corporate margin rose 120 basis points year-over-year to 8.5%. Revenue grew 5% to $11.9 billion. • Segment revenues increased 8% due to volume and yield growth at Ground and yield growth at SmartPost. • Turning now to the outlook, based on the economic outlook that Mike outlined, we reaffirm our FY 2015 earnings per share forecast of $8.50 to $9.00. • The outlook assumes continued moderate economic growth and a modest net benefit from fuel. • We expect revenue and earnings growth to continue for the rest of the year as moderate global economic growth drives volume and yield.
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Posted In: EarningsNews
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