FedEx Corp. reported its fiscal third-quarter net income rose 5% to $378 million, or $1.23 per share, from $361 million, or $1.13, a year ago, as difficult operating conditions held back stronger earnings improvement.
Revenue for the quarter ended Feb. 28 rose to $11.3 billion from $11 billion, the company said March 19.
Its profit was hurt by severe winter weather, which shaved $125 million off its income before interest and taxes.
“Historically severe winter weather significantly affected our third-quarter earnings,” CEO Frederick Smith said in a statement. “On days when the weather was closer to normal seasonal conditions, our volumes were solid, and service levels were high.”
FedEx also cut its full-year profit guidance because of the weather conditions to a range of $6.55 per share to $6.80 per share. The upper end of its previous earnings guidance was above $7 per share.
FedEx is ranked No. 2 on the Transport Topics Top 100 listing of the largest U.S. and Canadian for-hire carriers.