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FedEx, Nike Post Quarterly Earnings That Beat Estimates

July 01, 1999| From Bloomberg News

MEMPHIS, Tenn. — FDX Corp., parent of leading overnight-delivery company Federal Express, on Wednesday said fiscal fourth-quarter earnings rose 29% as improving overseas economies spurred demand.

Net income rose to $221 million, or 73 cents a share, in the quarter ended May 31 from $170.7 million, or 57 cents, in the year-earlier period. FDX was expected to earn 71 cents a share.

FedEx and other cargo carriers are benefiting from persistently expanding U.S. economy, and improving Asian economies helped push the Memphis, Tenn.-based company's international revenue up 9.1%. Still, the domestic express business didn't rise as much as analysts expected, and FDX shares fell 88 cents to close at $54.25 on the New York Stock Exchange.

Revenue rose 7.5% to $4.38 billion from $4.08 billion.

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Also reporting fiscal fourth-quarter earnings Wednesday was Nike Inc. The world's largest athletic shoe and clothing maker earned $94.4 million, or 33 cents per share, for the quarter, compared with a loss of $67.7 million, or 23 cents a share, in the last quarter of 1998.

Both quarters include restructuring charges. Excluding those, Nike earned $108.5 million, or 38 cents a share, for the quarter, compared with earnings of $11.8 million, or 4 cents, a year ago.

Wall Street analysts had projected earnings of 37 cents a share, excluding the charge.

Sales for the period were $2.18 billion, down 5% from $2.31 billion a year ago.

Nike shares fell 75 cents to close at $63.38 on the NYSE.

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