PostComm Annual Report 2007/2008 - June 25, 2008 Postcomm, the independent regulator for the postal services, has published its Annual report for 2007/08.
Postcomm's sets out details of our strategy:
Universal service. Ensure the continued provision of an affordable universal postal service.
Protecting customer interests. Where they have little effective choice, Postcomm will ensure customers benefit from an affordable universal service and adequate protection in terms of prices and service quality.
Promoting sustainable competition. We aim to provide customers with choice through efficient and sustainable competition between postal operators.
Advising on the post office network. We aim to ensure that government decisions on the future of the post office network are informed by Postcomm's research, information and advice.
Building effective stakeholder relations. Our stakeholders range from major mail customers and operators to Government departments, trade unions, Postwatch, Parliament and the devolved administrations. We aim to maintain and support strong relationships with all stakeholder groups through proactive communication and the sharing of information.
Using and developing resources effectively. We want to be an effective, efficient organisation, with a highly committed and motivated staff that is continually improving and regarded as "best in class" in comparison with our peer group of other regulators.
Annual Report
FedEx Corp. Reports 4Q and Full Year Earnings - June 18, 2008 [Press Release.]FedEx Corp. today reported a loss of $0.78 per share for the fourth quarter ended May 31, compared to earnings of $1.96 per diluted share a year ago. The quarter's results include the previously announced charge of $891 million ($696 million, net of tax, or $2.22 per diluted share) related predominately to one-time, non-cash asset impairment charges. These charges were associated with the decision to minimize the use of the Kinko's trade name and a reduction in the value of the goodwill resulting from the Kinko's acquisition. Last year's fourth quarter included a $0.06 per diluted share net benefit from a settlement with Airbus related to the A380 aircraft order cancellation. Excluding these items, earnings were $1.45 per diluted share in the fourth quarter compared to $1.90 per diluted share a year ago.
"Record high fuel prices and the weak U.S. economy dampened volume growth and substantially affected our bottom line," said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. "Despite the challenging conditions, our team members continue their outstanding performance in support of our customers, as service levels and morale remain high. We will continue to reduce expenses to match volume and revenue expectations."
Fourth Quarter Results
FedEx Corp. reported the following consolidated results for the fourth quarter:
- Revenue of $9.87 billion, up 8% from $9.15 billion the previous year
- Operating loss of $163 million, down from income of $1.01 billion last year
- Net loss of $241 million, down from last year's net income of $610 million
Total combined average daily package volume in the FedEx Express and FedEx Ground segments grew 1% year over year for the quarter, as 6% growth in FedEx International Priority (IP) and FedEx Ground shipments were mostly offset by continued declines in U.S. domestic express shipments.
Fourth quarter operating results declined as a result of the Kinko's-related charge, as well as the continued escalation of fuel prices, and the weak U.S. economy, which limited demand for U.S. domestic express and copy and print services.
Full Year Results
FedEx Corp. reported the following consolidated results for the full year:
- Revenue of $38.0 billion, up 8% from $35.2 billion the previous year
- Operating income of $2.08 billion, down 37% from $3.28 billion last year
- Net income of $1.13 billion, down 44% from last year's $2.02 billion
- Earnings per share of $3.60, down 44% from $6.48 per share a year ago
Capital spending for fiscal 2008 was $2.9 billion. Fiscal 2007 results also included costs associated with upfront compensation and benefits under the new pilot labor contract at FedEx Express, which reduced second quarter earnings by approximately $0.25 per diluted share. Excluding the above items, earnings were $5.83 per diluted share for the year compared to $6.67 per diluted share a year ago.
Outlook
Earnings are difficult to predict in light of very volatile and high fuel prices and an uncertain economic outlook. FedEx projects earnings to be $0.80 to $1.00 per diluted share in the first quarter. This is in contrast to $1.58 per diluted share a year ago when crude oil averaged about $70 per barrel and the U.S. economy was stronger. The company is currently targeting fiscal 2009 earnings of $4.75 to $5.25 per diluted share. This guidance incorporates the current high fuel prices and the related impact on fuel surcharges, which are reducing demand for FedEx services and impacting yield across the company's transportation segments. This outlook assumes no additional increases to current fuel prices and no further weakening in the economy.
"The operating environment for fiscal 2009 is expected to be very difficult due to the weak U.S. economy and extremely high fuel prices," said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. "However, we will focus on reducing expenses and remaining cash flow positive, and will continue to take positive steps to improve the customer experience across our portfolio of services."
The capital spending forecast for the year is less than $3 billion, which includes significant investments in more fuel-efficient aircraft.
Good 1Q 2008 Results for Swiss Post - May 29, 2008
