FedEx Corp.’s fiscal first-quarter improved from a year ago, but the company trimmed its full-year earnings forecast slightly on higher fuel costs and a moderate economic growth outlook.
Net earnings rose to $464 million, or $1.46 per share, from $380 million, or $1.20 per share a year ago.
Revenue for the quarter ended Aug. 31 rose 11% to $10.52 billion, FedEx said Thursday.
The company trimmed its full-year earnings estimate by a dime, to a range of $6.25 to $6.75 per share, citing higher fuel prices and moderate global economic growth.
Second-quarter earnings will be in a range of $1.40 to $1.60 per share. FedEx projected, up from 89 cents a year ago.
Less-than-truckload unit FedEx Freight’s operating income was $42 million, compared with an operating loss of $16 million a year ago. Revenue rose 6% to $1.33 billion.
LTL yield rose 11%, though average daily shipments fell 7%. FedEx Freight set a 6.75% rate increase last month, which took effect Sept. 6.
FedEx Express’ operating income fell 19% to $288 million, while revenue rose 12% to $6.59 billion. Domestic revenue per package rose 13%, while average daily package volume fell 3%.
FedEx Express will boost average shipping rates 3.9%, effective Jan. 2. A full 5.9% increase will be offset by adjusting its fuel surcharge by 2%, FedEx said.
FedEx Ground’s operating income jumped 42% to $407 million, while revenue rose 16% to $2.28 billion. Average daily package volume rose 5%.
FedEx Corp. is ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
