Package Services Boost FDX Profits

Strong growth in air and ground package delivery services is boosting the fortunes of FDX Corp.

The Memphis, Tenn.-based holding company said profits increased 26% in the fiscal year that ended May 31 thanks to good performances by two of its largest businesses: air freight carrier Federal Express and ground package carrier RPS Inc.

Chairman Frederick W. Smith said FDX’s success comes from the “strength of its diverse global network” and its e-commerce and supply chain management services.

Executive Vice President Alan B. Graf Jr. said the company is benefiting by selling a complete set of services to more customers.

FedEx domestic revenue grew 5.2% to $10.17 billion in the fiscal year. Operating income increased 7.8% to $783 million (See accompanying earnings report).

FedEx International posted revenue of $3.8 billion, a gain of 6.1%. Operating profits rose 2.3% to $88 million.

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