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September 17, 2014 11:20 AM, EDT

FedEx Corp’s First-Quarter Income Rises 24% to $606 Million

JB Reed/Bloomberg News

FedEx Corp. reported its fiscal first-quarter net income rose 24% to $606 million, or $2.10 per share, from $489 million, or $1.53, a year ago.

Revenue for the quarter ended Aug. 31 rose 6% to $11.7 billion from $11 billion, the company said Sept. 17.

The freight segment increased first-quarter operating income 70% to $99 million, and it reported revenue of $1.61 billion — a 13% increase from the same time last year.

Less-than-truckload revenue per shipment increased 3% on higher weight per shipment, increased fuel surcharge revenue and higher rates, according to FedEx.

“FedEx Corp. is off to an outstanding start in fiscal 2015, thanks to very strong performance at FedEx Ground, solid volume and revenue increases at FedEx Freight and healthy growth in U.S. domestic volume at FedEx Express,” Chairman and CEO Frederick Smith said in a statement.

The company said it acquired 5.3 million shares of FedEx common stock, and no shares remain under the existing share repurchase authorization.

FedEx said it is hiring 50,000 peak season workers this year, compared with 40,000 last year. UPS Inc. has said it plans to hire as many as 95,000 seasonal workers, an increase of nearly 75%, to handle increased peak-season holiday shipments.

FedEx reaffirmed fiscal 2015 earnings of between $8.50 and $9 per share, assuming no net year-over-year fuel impact and continued moderate economic growth.

FedEx ranks No. 2 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.