FedEx Earnings May Top Estimates

Share this article:
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.


Share this article:
close

Next Article in Direct Mail

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Direct Mail

Ricoh Strikes a Blow for Multichannel on a Small Scale

Ricoh Strikes a Blow for Multichannel on a ...

The company introduces a creative service to help print shops augment direct mail with email and pURL landing pages.

Delivered: Insurance Mailers

Delivered: Insurance Mailers

What's in our mailbox this month: Insurance mailers. See which ones cover all their bases—and which ones, not so much.

Marketing Challenge: Defending Direct

Marketing Challenge: Defending Direct

The new CEO wants to cut direct mail because of postal increases—even though DM is great for ROI. What would you do? Email your answers to ginger.conlon@dmnews.com by June 30 ...