The Markets

FedEx Ships Back Rest of 401(k) Match

<span>With earnings per share for its fiscal first quarter expected to be up between 81% and 116%, the FedEx Corporation announced Monday it would fully restore its 401(k) match effective January 1, 2011.</span> 
Reported by Fred Schneyer

A FedEx news release said the cost of restoring its match for its 401(k) plans had already been figured into its guidance to investors that it expected EPS of $1.05 to $1.25 per diluted share for the quarter ending August 31. 

The shipping giant said its rosy investment predictions reflected “the current market outlook for fuel prices and a continued moderate recovery in the global economy.” 

“Our revenue and earnings growth are exceeding original expectations, primarily due to better-than-expected growth in FedEx Express and FedEx Ground volumes,” said Alan B. Graf Jr., FedEx Corp. executive vice president and chief financial officer, in the announcement. “Our package volume growth rates in our first quarter are continuing at a pace similar to our fourth quarter.” 

 The company announced last December that it was putting back in place half of its former match as well as its merit salary increases and bonus programs (see FedEx Puts Back Part of 401(k) Match).