MEMPHIS, Tenn., March 21, 2007
For the third quarter, the FedEx Kinko’s segment reported:
• Revenue of $485 million, down 3% from last year’s $501 million
• Operating income of $4 million, down 43% from $7 million a year ago
• Operating margin of 0.8%, down from 1.4% the previous year
The FedEx Kinko’s revenue decrease for the quarter was primarily due to declines in copy product revenues, which more than offset higher package acceptance fees paid by FedEx Express and FedEx Ground. Operating margin was negatively impacted by the copy product revenue decline, network expansion costs and higher employee development and training costs.
FedEx Kinko’s continues a company-wide effort to refocus resources on core business priorities, including a multi-year network expansion using a lower-cost model. In the first nine months of the fiscal year, the company opened 150 centers and plans for a total of approximately 200 new locations by the end of FY07. In addition, FedEx Kinko’s launched Print Online in October and is excited about the future prospects of this new Web-based, print-on-demand application.
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