International shipping giant, FedEx, is reporting a 12% profit loss in its second quarter, which ended on November 30, according to a company press release.
FedEx reported earnings of $1.39 per diluted share, down from last year when a share was $1.57, the release said. The second quarter loss, FedEx said, was due in part by the impact Superstorm Sandy which caused “reduced shipment volumes and incremental operating costs.”
“Operating income for the quarter improved at FedEx Freight and FedEx Ground due to increased volumes and higher yields, while persistent weakness in the global economy and increased demand for lower-yielding international services limited profits at FedEx Express,” Frederick W. Smith, FedEx chairman, president and chief executive officer said in the release.
According to the release, FedEx’s revenue of $11.1 billion increased by 5% over last years $10.6 billion. The company also said that its operating income of $718 million was down by 8% from $780 million last year, and the net income of $348 million dropped from $497 million last year.
In an article in the New York Times, FedEx is looking to revamp the freight company by reducing staff. According to the article, “It has extended a buyout offer that it expects thousands of workers in the United States to accept.”
Although this quarter showed a 12% loss, FedEx is feeling positive about the future, citing a robust economic season due to the holidays. “We are hard at work on another record-setting holiday shipping season, driven by the continued growth of e-commerce,” said CEO Fred Smith, in the release.
Erin Lynch is the associate editor at Multichannel Merchant. Erin can be reached by emailing her at [email protected]. You can also follow her on Twitter at @LynchMCM or on LinkedIn.