Citing Strong Demand, FedEx Raises Earnings Guidance

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edEx Corp. said Monday it was raising its guidance for the fiscal 2005 first quarter and fiscal year due to "strong demand" at its international express, ground and less-than-truckload services.

The company said in a statement it expected to report profits for first quarter ended Aug. 31 of $1 to $1.10 per share, up from its previous guidance of 90 cents to $1.

In addition, earnings for the full year would be $4.40 to $4.60 per share, up from its earlier estimate of $4.20 to $4.40.

"We have strong momentum in our businesses and believe the economy continues on a sustainable expansion path," said Alan Graf Jr., chief financial officer.

"While there are potential risks on the horizon, such as prolonged high oil costs that could impact the worldwide economy, we believe we will continue to see strong demand which will result in higher earnings," said Graf. "To meet this increased demand for our services, we will increase our capital investments to between $2.0 and $2.1 billion in fiscal 2005 to expand the capacity of our international express, ground and freight networks."

The company said it would report first-quarter earnings on Sept. 22.

FedEx is ranked No. 2 on the Transport Topics list of the largest U.S. and Canadian trucking companies.

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