*FedEx Express to Issue Rate IncreaseDespite positive second-quarter earnings, FedEx Corp., Memphis, TN, announced yesterday that its subsidiary Federal Express Corp. will increase list rates an average of 4.9 percent for shipments within the United States effective Feb. 1.
U.S. export shipments generally will receive an average list rate increase of 2.9 percent. FedEx Express last adjusted rates in 1999.
"The value that FedEx provides in streamlining customer's supply chains, with speed and information replacing working capital and inventory, is increasingly important in today's economic environment," said T. Michael Glenn, FedEx's executive vice president of market development and corporate communications. "This rate adjustment ensures that FedEx Express will continue to provide the outstanding service and value, backed by the user-friendly technology, that customers expect from FedEx."
Earlier this month, FedEx reported the following consolidated results for the second quarter, which ended Nov. 30:
• Revenue of $4.9 billion, up 7 percent from $4.6 billion the previous year.
• Operating income of $345 million, up 13 percent from $305 million a year ago.
• Net income of $194 million, up 13 percent from last year's $171 million.
FedEx said customers can download rates from the password-secure FedEx Customized Rate Guide Web site, accessible through www.fedex.com.