FedEx Increases Fiscal Second Quarter Profit, Freight Segment Business Up
December 18, 2013
The FedEx Ground segment reported revenue of $2.85 billion, up 10% from last year and operating income of $424 million, up 3%. Photo: Evan Lockridge
Trucking and parcel delivery provider FedEx has released second quarter fiscal earnings showing gains in both revenue and profit.
Revenue during the period was $11.4 billion, up 3% from the same time a year earlier, while net income totaled $500 million, up 14% during the same time.
FedEx is increasing its forecast of full-year earnings per share growth to 8% to 14% above last year's adjusted results, compared to its previous growth range of 7% to 13%.
For the second quarter, the FedEx Freight segment reported revenue of $1.43 billion, up 4% from last year and operating income of $77 million, up 1% during the same time
Less-than-truckload average daily shipments and weight per shipment increased 4% and 2%, respectively, according to the company. LTL revenue per hundredweight decreased 1% primarily due to lower fuel surcharges, higher weight per shipment and shorter length of haul.
For the second quarter, the FedEx Express segment reported revenue of $6.84 billion, down slightly from last year's $6.86 billion. Operating income was $326 million, up 42% from a year ago.
The company said revenue decreased slightly due to lower express freight revenue and lower fuel surcharges, mostly offset by increased base package yields. U.S. domestic revenue per package increased 2%, as higher rates and weight per package were partially offset by lower fuel surcharges. U.S. domestic average daily package volume decreased slightly.
FedEx Ground segment reported revenue of $2.85 billion, up 10% from last year and operating income of $424 million, up 3% during the same time/
FedEx Ground average daily volume grew 8% in the second quarter, as growth in both business-to-business and FedEx Home Delivery services was driven by market share gains, according to the company. Revenue per package increased 2% due to rate increases and higher residential surcharges, partially offset by lower fuel surcharges.
More information is on the FedEx website.