FedEx will increase capital spending 24 percent over the next year, adding $800 million as it replenishes its fleets with new aircraft, trucks and tractors.
The transportation giant plans to spend $4.2 million on equipment and plant in its new fiscal year, compared with $3.4 million in the year that ended May 31.
That will include spending on aircraft at FedEx Express, network expansion at FedEx Ground and equipment for trucking outfit FedEx Freight.
“We expect approximately 59 percent of capital expenditures in 2012 will be designated for growth initiatives,” the company said in 10-K annual report.
The company will get tax breaks on some of those purchases under tax expensing and accelerated depreciation provisions of the Tax Relief Act of 2010.
Capital spending soared 22 percent at FedEx in 2010, as the $39.3 billion company purchased new aircraft and aircraft-related equipment for FedEx Express, restoring some capacity to networks that were slimmed down during the global economic downturn.
FedEx added six 777 freighters and 22 757s to its fleet in the fiscal year that ended May 31, according to the annual report, filed with the SEC July 12.
FedEx will spend $2 billion on aircraft over the next year, including the Boeing planes that will replace older aircraft.
Capital expenditures rose 7 percent to $426 million at FedEx Ground but fell 28 percent to $153 million at less-than-truckload carrier FedEx Freight.
Contact William B. Cassidy at email@example.com. Follow him on Twitter at @wbcassidy_joc