FedEx Corp (FDX)

[altruism]

Could be back over a $100.00 PPS if they do hit double digits on their profit margins imo..

FedEx Corp. (FDX) said Wednesday that the company's big express delivery business is back on track for double-digit profit margins, after the recession sapped strength from the unit over the past couple years.

Dave Bronczek, chief executive of FedEx Express, stopped short of putting a timeframe around the goal, but he said the unit's margins will improve as international shipments continue to account
for an increasing portion of revenue and as the economy boosts demand and pricing.

"We remain firmly committed to driving our operating profit at FedEx Express into double-digit territory," he said, speaking during FedEx's investor and lender meeting in Memphis, Tenn.

The express unit's profit margin hit 9.4% in FedEx's 2007 fiscal year, but subsequently slumped to 4.7% in fiscal 2009 and 5.2% in fiscal 2010 after "the global economy took a freefall," Bronczek said, although he added that those margins were still "respectable."

Regardless, he said the company is committed to increasing the numbers "with the economy back on a growth track."

He said the goal is being helped by what has been improving yields -- a broad measure of pricing -- as well as average package weights.

FedEx Express said yields in its important international priority segment have climbed 4% in the past year.

"We've reversed declining yields," Bronczek said. Pricing has been "more stable [and] more rational than I've seen it in some time."

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