Joseph Bonney, Senior Editor | Mar 22, 2012 9:37AM EDT
FedEx Corp.’s profit more than doubled during its fiscal third quarter, fueled by record holiday package shipping, higher profit for the company’s ground shipping unit and reduced losses at FedEx Freight.
“FedEx results were driven by improving yields, record holiday package shipping and exceptional performance at FedEx Ground,” said Fred Smith, FedEx chairman, president and CEO. “We expect our solid performance to continue in our fourth quarter, capping off a strong fiscal year.”
FedEx posted net income of $521 million, up 126 percent from a year earlier, as revenue rose 9 percent to $10.56 billion.
The company’s express unit had operating income of $349 million, up 96 percent, as revenue rose 8 percent to $6.54 billion.
FedEx Ground operating income rose 43 percent to $465 million on a 14 percent rise in revenue to $2.48 billion.
The company’s FedEx Freight segment narrowed its operating loss to $1 million from $110 million a year ago as revenue rose 10 percent to $1.23 billion.
Less-than-truckload yield rose 6 percent because of higher fuel charges and improved base yields. LTL average daily shipments rose 2 percent, aided by favorable weather.
Contact Joseph Bonney at jbonney@joc.com. Follow him on Twitter at @JosephBonney.
