Increase in Ground Shipments Lifts FedEx’s Profits

A surge in ground shipments helped pushed FedEx Corp.’s fiscal fourth-quarter net income to $236 million or 78 cents per share, from $113 million or 38 cents per share a year ago.

The Memphis, Tenn.-based company saw sales rise 5.9% to $5.4 billion in the quarter ended May 31.

The company said total package volume at FedEx Express and FedEx Ground grew a combined 5% compared with last year’s fourth quarter. Also, FedEx Ground more than doubled its profit from a year ago on a 21% increase in average daily volume and a 27% increase in revenue.

Part of the reason for the increase could be shippers anticipating a strike at rival United Parcel Service, Bloomberg reported.

Looking ahead, FedEx said it expects to earn less in the fiscal first quarter than forecast because more customers are switching away from expensive air shipments, Bloomberg said.

FedEx is ranked No. 2 on the 2000-2001 Transport Topics 100 list of the largest U.S. trucking companies. Transport Topics

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