FedEx Q2 Net Income Surges 33 PercentFedEx Corp.'s fiscal second-quarter profit climbed 33 percent as U.S. and international deliveries increased and the company benefited from a fuel surcharge, the carrier said yesterday.
For the three months ending Nov. 30, net income rose to $471 million versus $354 million last year. Revenue of $8.09 billion was up 10 percent from $7.33 billion the previous year, while operating income of $790 million increased 32 percent from $600 million a year ago. Last year's second quarter included two one-time items that hurt earnings.
Total combined average daily package volume at FedEx Express and FedEx Ground grew 3 percent, led by improved international express package growth. FedEx Ground volumes were weaker than expected, the company said, but strengthened in the last two weeks of November and continue to grow this month. That trend is expected to continue into the second half of the company's fiscal year.
The company posted the strong results despite a 51 percent increase in spending on fuel across all its units in the period, amounting to an extra $299 million. But FedEx said it covered some of that increased expense through fuel surcharges.
The quarter didn't include most of the peak holiday shipping season. FedEx's busiest day occurred Dec. 12, when its ground and air networks transported 8.5 million packages, it said, up 40 percent from the normal average daily volume of 6 million.
Melissa Campanelli covers postal news, CRM and database marketing for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters