FedEx reported a 24 percent decline in net income to $788 million for the second quarter ended November 30, 2022 compared to $1.04 billion in Q22021 on lower FedEx Express income.
Revenue declined 3 percent to $22.8 billion and net operating margin was down to 5.2 percent from 6.8 percent in the same period last year.
“The FedEx team moved with urgency to make rapid progress on our ongoing transformation while navigating a weaker demand environment,” says Raj Subramaniam, president and chief executive officer, FedEx. “Our earnings exceeded our expectations in the second quarter driven by the execution and acceleration of our aggressive cost reduction plans. At the same time, we continue to focus on delivering excellent service for our customers.”
FedEx Express operating income declined 64 percent year-over-year due to lower global volumes, partially offset by an 8 percent package yield increase. “FedEx Express implemented previously planned and incremental cost reduction actions during the quarter to mitigate the impact of volume declines including structural air network changes and the temporary parking of aircraft.”
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