FedEx Corp., Memphis, said yesterday that it expects to report higher earnings of $1 to $1.10 per diluted share for the first quarter ending Aug. 31 and $4.40 to $4.60 per diluted share for fiscal 2005. Previous guidance was $0.90 to $1 per diluted share for the first quarter and $4.20 to $4.40 per diluted share for fiscal 2005.
“We are seeing strong demand across our international express, ground and less-than-truckload services,” said Alan B. Graf Jr., executive vice president and chief financial officer. “We have strong momentum in our businesses and believe the economy will continue on a sustainable expansion path.”
Though prolonged high oil costs could impact the worldwide economy, “we believe we will continue to see strong demand which will result in higher earnings,” Graf said. To meet the demand, FedEx expects to increase its capital investments next year to more than $2 billion to expand its international express, ground and freight networks.