Package Volume Sparks FedEx Q3 Earnings

Fiscal third-quarter earnings at FedEx Corp. increased 23 percent, largely from higher package volumes, the company said yesterday.

For the period ended Feb. 28, FedEx posted net income of $147 million, compared with $120 million in the same quarter last year.

Revenue was $5.55 billion, up from $5.02 billion last year. Operating income was $269 million, a 14 percent increase from $237 million last year.

Despite the gains, FedEx said, severe winter storms in the quarter raised expenses and caused revenue losses. In addition, fuel costs climbed 44 percent over a year ago.

Total average daily package volume at FedEx Express and FedEx Ground -- its two largest divisions -- grew 9 percent year-over-year for the quarter.

Volume grew 24 percent at FedEx Ground, about one-third of which was attributable to FedEx Home Delivery. Volume continues to grow at FedEx Home Delivery, where about 34,000 shippers now use it, more than double the number from a year ago.

FedEx Express package volume grew slightly, mostly from FedEx International Priority, which saw average daily package volume rise 8 percent in the third quarter. That was led by exports from Asia, where volume climbed 18 percent. U.S. domestic express average daily package volume declined less than 1 percent in the quarter.

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