March 24, 2000
FedEx Net Profit up Even With Higher Fuel Costs
FedEx Corp., Memphis, said yesterday its net income rose 45 percent during the third quarter of fiscal year 2000. FedEx said it had net income of $113 million for the quarter ending Feb. 29, alleviating fears that increases in gas and energy prices would eat into earnings. Net income was up $78 million from the same quarter in 1999, the company said.
Higher fuel prices did drive expenses up by $100 million, the company said. But those higher fuel costs were mitigated with a 3 percent surcharge instituted on Feb. 1. The company plans to increase that to 4 percent on April 1.