FedEx Profit Leaps More Than 50%
FedEx Corp. on Wednesday reported a 4% increase in revenue while profit jumped more than 50% in its most recent fiscal quarter.

Photo: FedEx Corp.

Photo: FedEx Corp.
FedEx Corp. on Wednesday reported a 4% increase in revenue while profit jumped more than 50% in its most recent fiscal quarter.
The trucking and parcel delivery giant had revenue of $11.7 billion for the three month period ending Feb. 28, compared to $11.3 billion a year earlier. Net income totaled $580 million versus $378 million a year earlier, a 53% increase, or $2.01 per diluted share compared to $1.23 per share last year.
“We had a very successful peak season as volumes grew across all transportation segments, and our profit improvement programs are moving ahead as scheduled,” said Frederick W. Smith, chairman, president and CEO.
In a statement the company said operating results improved due to volume and growth in all three transportation segments, lower fuel prices, benefits from profit improvement program initiatives, less negative weather and reduced pension expenses.
FedEx projects earnings to be $8.80 to $8.95 per diluted share for fiscal 2015, down slightly from prior guidance for a top end of $9, but higher from a bottom end of $8.50.
For the quarter, the FedEx Freight segment reported revenue of $1.43 billion, up 6% from last year’s $1.35 billion. Operating income totaled $68 million, up 94% from $35 million a year ago.
Less-than-truckload average daily shipments increased 3%, while LTL revenue per shipment grew 3% due to higher rates, according to the company.
FedEx Express reported third quarter revenue of $6.66 billion, compared to last year’s $6.67 billion, while operating income totaled $384 million, up 129% from $168 million a year ago.
The company little change in the segment’s revenue was due to lower fuel surcharges and unfavorable currency exchange rates which more than offset volume and base yield growth.
For the third quarter, the FedEx Ground segment reported revenue of $3.39 billion, up 12% from last year’s $3.03 billion. Operating income was $558 million, up 14% from $490 million a year ago
FedEx Ground average daily volume grew 7% in the third quarter due to growth in both business-to-business and home delivery services, according to the company. Revenue per package increased 3% due to base rate increases and higher dimensional weight charges.
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