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| FedEx Q4 net loss widens to $876 mn |
| Press Trust of India / New York Jun 17, 2009, 21:45 IST |
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Leading logistics firm FedEx's net losses widened to $876 million for the fourth quarter ended May 2009, primarily bogged down by global economic sluggishness and one-time charges.
The company had a net loss of $241 million in the same period a year ago.
FedEx in a statement today said, its revenues for the latest quarter stood at $7.85 billion against $9.87 billion in the year-ago period.
According to the statement, the firm incurred charges of $1.2 billion ($1.1 billion non-cash), resulting primarily from the impairment of goodwill related to the acquisitions of Kinko's and Watkins Motor Lines.
"These impairment charges reflect a decline in the current fair value of these companies in light of economic conditions and their recent and forecasted performance," it noted.
Kinko's is now known as FedEx Office while Watkins Motor Lines is called FedEx National LTL.
Further, FedEx incurred expenses related to cost cutting measures including the reduction of personnel.
"Revenue was also negatively impacted by reduced fuel surcharges and lower shipment weight. Revenue declines were partially offset by stringent cost control efforts and share gains in the parcel market," the statement said.
The company said domestic package revenue in US declined 21 per cent, driven by a 19 per cent drop in revenue per package due to lower fuel surcharges.
FedEx's Chief Executive Frederick W Smith said the company's operations even with strong economic headwinds.
"There are signs that the worst of the recession is behind us and we remain optimistic that we will see quarter- over-quarter economic improvement later this calendar year," Smith, who is the firm's Chairman and President said.
FedEx's has said that operating environment for the first two quarters of fiscal year 2010 is expected to be "extremely difficult".
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