FedEx Earnings May Top Estimates
FedEx Corp.'s quarterly earnings may exceed its forecasts because of strong revenue and profit growth at its ground shipping unit and cost controls at its air cargo business, the express shipper said yesterday.FedEx Ground package volume growth, in particular, is expected to approach 20 percent in the third quarter, which ends Feb. 28.
"Strong revenue and profit growth at FedEx Ground and continued focus on costs at FedEx Express will improve our profitability this quarter," said Alan B. Graf Jr., executive vice president and chief financial officer.
FedEx said FedEx Express, formerly Federal Express, continues to grapple with a weak overnight package shipping environment, spawned by the overall economic downturn.
However, the company said year-over-year growth comparisons have improved from the second quarter. The additional traffic -- mainly Priority Mail -- being transported for the U.S. Postal Service under the recently expanded business alliance has helped offset the current softness in the express package business.
