FedEx Sees International, Ground Demand Growing

FedEx scaled up its earnings projections sharply on Monday, saying it is seeing a steady increase in international express shipping demand and new strength in its domestic ground parcel service.

The carrier revised its outlook for the quarter ending Nov. 30 as much as 70 percent from earlier projections. That would still be far below last year's profit but signals a potential turnaround in the express market and the prospect that shippers are more willing to pay more to push goods to market.

"FedEx will exceed previous earnings guidance in the second quarter primarily due to better-than-expected growth in FedEx International Priority and FedEx Ground volumes, coupled with the benefits of our continuing cost control programs,” said Alan B. Graf Jr., FedEx executive vice president and chief financial officer.

"Year-over-year growth in our U.S. overnight express and FedEx International Priority services increased each month during the quarter, aided by inventory restocking and our successful sales efforts. Demand for our international services has improved significantly since the first quarter, particularly in Asia and Latin America."

FedEx previously said earnings would fall to between 65 cents and 95 cents per share. The company announced Monday that it now expects to report earnings on Dec. 17 of $1.10 per diluted share for the quarter, down 30 percent from $1.58 per diluted share a year ago.