FedEx Corp., Memphis, Tenn, reported higher earnings and operating income in its third quarter, which ended at the end of February.

Earnings for the quarter were $0.39 per diluted share, up 5% from $0.37 per diluted share in last year's third quarter. The company reported revenue of $5.02 billion, up 4% from $4.84 billion the previous year. Operating income increase to $237 million, up 24% from $191 million a year ago, while net income moved up to $120 million, up 11% from last year's $108 million.
FedEx said it expects fourth quarter volume at FedEx Ground to grow about 16% year-over-year. The company has refined its fourth quarter year-over-year volume outlook for FedEx Express and estimates that its U.S. domestic average daily package volume will be down approximately 2% and FedEx International Priority shipments will be down about 1%. FedEx Express derives a significant portion of its U.S. domestic express business from the manufacturing and wholesale sectors. These sectors continue to be weaker than the U.S. economy as a whole on a year-over-year basis and the company expects that once they rebound, Express' volumes will improve.
The company continues to believe that earnings for the fourth quarter will be $0.70 to $0.80 per diluted share, compared to $0.64 per share a year ago excluding certain charges.
For the third quarter, FedEx Express reported revenue of $3.78 billion, about even with last year's $3.79 billion and operating income of $145 million, down 9% from $160 million a year ago.
FedEx Express U.S. domestic average daily package volume declined 5% year-over-year for the third quarter, while package volume from its FedEx International Priority service was down about 2%.
FedEx Ground reported revenue of $668 million, up 26% from last year's $529 million, and operating income of $69 million, up 283% from $18 million a year ago.
FedEx Ground volume growth accelerated in the quarter, increasing 21% year-over-year due to strong customer demand. The volume growth was primarily in its core business-to-business shipments, with additional growth coming from the company's expanding FedEx Home Delivery operation.
For the third quarter, FedEx Freight reported revenue of $440 million, compared to $337 million a year ago, and operating income of $20 million, compared to last year's $18 million.
FedEx Freight results for last year's third quarter included Viking Freight from the beginning of the quarter and two months of results from American Freightways. Officials say FedEx Freight continued to make competitive gains during the quarter. The company says it believes its recently announced decision to rebrand Viking Freight and American Freightways as FedEx Freight over a three-year period will solidify its position as the largest regional LTL carrier in the U.S.