Federal loses out
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• Federal Express, the US overnight parcels carrier which earlier this year bought Lex Wilkinson and 1,ex Systemline, made a $164.9 million (2115.3 million) loss in its second financial quarter, which ended on November 30.
The company, which predicts a $3 billion (22.09 billion) overal turnover this year, blames the loss on exceptional costs associated with the closure of the Zappail electronic document transmission service which amounted to $199.4 million (2139.4 million).
On continuing operations, Federal Express made a net profit of $34.5 million (224.12 million) in the second quarter, representing a net profit for the half year of $87.4 million (265.2 million) down from $93.2 million (£65.17 million) during the same period last year.
Chief executive Frederick Smith says the elimination of tax credits and the intense price competition in the overnight parcels business also affected results in the second quarter.