Strong profit growth for FedEx

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Operating profit rose 107 per cent to $813m at FedEx in the third quarter, on sales up nine per cent to $10.6bn

“FedEx Corp results were driven by improving yields, record holiday package shipping and exceptional performance at FedEx Ground,” said chairman Frederick Smith.

The Express business reported a 96 per cent rise in operating profit to $349m. The group said US domestic revenue per package grew nine per cent due to higher rate per pound and fuel surcharges.

International priority revenue per package grew five per cent due to higher fuel surcharges and package weights, while average daily package volume decreased one per cent.

IP freight average daily pounds increased four per cent with revenue per pound up two per cent due to higher fuel surcharges. In total, IP average daily package and freight pounds increased two per cent and revenue increased six per cent year-over-year.

FedEx Ground also grow strongly with average daily package volumes up five per cent, driven by increases in FedEx Home Delivery services as well as the business-to-business market.

Looking ahead, Smith said: “We expect our solid performance to continue in our fourth quarter, capping off a strong fiscal year.”

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