FedEx Corp. said Thursday its fiscal third-quarter profit and revenue increased from a year ago, citing an improving global economy.
Net income rose to $239 million, or 76 cents per share, from $97 million, or 31 cents, a year ago.
Revenue for the quarter ended Feb. 28 rose 7% to $8.7 billion, the company said in a statement.
FedEx projected it would earn $1.17 to $1.37 per share in the fourth quarter, and $3.60 to $3.80 for its fiscal year which ends in May, reflecting the “current market outlook for fuel prices and a continued modest recovery in the global economy.”
Despite the improvement, less-than-truckload unit FedEx Freight’s operating loss widened to $107 million, from an operating loss of $59 million a year ago, though revenue rose 14% to $1.04 billion.
Average daily LTL shipments rose 26%, while LTL yield fell 8% due to the effects of discounted pricing, FedEx said, adding that the operating loss increased due to lower yields and higher purchased transportation costs.
The FedEx Ground segment’s operating income gained 32% to $258 million, while revenue rose 7% to $1.91 billion, with the company citing growth in the business-to-business market.
FedEx Express saw its operating income jump to $265 million, from $45 million last year, while revenue improved 8% to $5.44 billion.
FedEx Corp. is ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
