FedEx Reports Strong Revenue and Earnings Growth

Package delivery company FedEx Corp. posted a 40 percent surge in fiscal first-quarter profit yesterday, citing a robust global economy.

The Memphis-based company reported a net profit of $475 million for its 2007 fiscal first quarter that ended August 31, compared with $339 million a year earlier.

FedEx also reported revenue of $8.54 billion, up 11 from $7.71 billion the previous year, operating income of $784 million, up 34 percent from $584 million a year ago, and operating margin of 9.2 percent, up from last year's 7.6 percent.

Total combined average daily package volume at FedEx Express and FedEx Ground grew 5 percent year over year for the quarter, due to continued growth in ground and international express shipments.

FedEx said it remains confident in its ability to achieve solid profitable growth by taking advantage of strong international trade trends, increased demand for fast-cycle logistics and the expansion of online purchasing.

FedEx also lowered its current-quarter guidance 20 cents a share, to between $1.45 and $1.60 a share, due to a one-time charge of $145 million in up-front compensation for its pilots, who will announce their vote on a tentative labor agreement next month.