Weak global markets and Superstorm Sandy hit profits at FedEx Corp in the second quarter. Operating income fell eight per cent to $718m despite a five per cent rise in sales to $11.1bn.
“Operating income for the quarter improved at FedEx Freight and FedEx Ground due to increased volumes and higher yields, while persistent weakness in the global economy and increased demand for lower-yielding international services limited profits at FedEx Express,” said Fred Smith, chairman, president and chief executive officer.
“Earnings also were negatively impacted by disruptions caused by Superstorm Sandy. We are hard at work on another record-setting holiday shipping season, driven by the continued growth of e-commerce. I would like to thank all of our team members for their hard work and dedication during our peak season.”