This from Air Cargo World Online:

FedEx Profit Surges

In the fiscal year ended May 31, FedEx earned net income of $2.016 billion on revenue of $35.214 billion. Profit improved 11.6 percent compared with 2006. Revenue was 9 percent higher than in the prior year. Operating margin for both 2006 and 2007 was 9.3 percent.

Results for 2007 included a $143 million charge at FedEx Express associated with pay and benefits under the new labor contract with FedEx pilots. Results for 2006 included a $79 million charge, or $49 million net of tax, to adjust the accounting for certain facility leases, predominantly at FedEx Express.

In the quarter ended May 31, FedEx earned profits well in excess of the three earlier quarters. Fourth quarter profit was $568 million on revenue of $9.151 billion.

The highest revenue division of FedEx is its Express segment. Operating income at FedEx Express increased $188 million or 11 percent compared with the prior year. The largest percentage gain was in the FedEx Ground segment, which acquired Watkins Motor Lines in September 2006. Operating income went up $108 million or 15 percent year-over-year.

FedEx Kinko's operating income declined $12 million or 21 percent.