Thu, Sep 19, 8:21 PM (92 days ago)
In the first quarter of fiscal 2025, FedEx Corporation reported a slight revenue decline to $21,579,000, down from $21,681,000 in the prior year, reflecting challenges in demand and operational efficiency. Operating income fell 27% to $1,080,000, with a consolidated operating margin of 5.0%, impacted by increased operational costs and a shift towards deferred services. The Federal Express segment's revenue decreased 1%, while FedEx Freight saw a 2% decline. Notably, net income dropped 26% to $794,000, with diluted earnings per share at $3.21. Cash flow from operations decreased significantly to $1,187,000, primarily due to working capital changes. FedEx's cash and cash equivalents totaled $5,943,000, down from $6,501,000. Capital expenditures were reduced to $767,000, focusing on strategic investments while managing costs amid macroeconomic pressures, including inflation and geopolitical uncertainties. The company anticipates ongoing challenges in the global economy and plans to continue executing its DRIVE program aimed at optimizing costs and improving operational efficiency.