FedEx Freight increased its profit 90 percent from a year ago as less-than-truckload revenue and freight demand climbed in the three months that ended Nov. 30.
The largest stand-alone LTL carrier in the U.S., FedEx Freight reported a $76 million operating profit on $1.38 billion in revenue for its second quarter of fiscal 2013.
That compares with a 114 percent increase in profit in the previous quarter, which ended Aug. 31, and a 93 percent increase in profit in the May 31 quarter.
The $5.3 billion industrial freight arm of FedEx reported a $162 million operating profit in the fiscal year that ended last May, its first annual profit since 2008.
The trucking company is benefiting from a major network reorganization in 2011 and further “adjustments” to its new priority and economy services in July 2012.
FedEx Freight revenue increased 4 percent in the last quarter, while LTL yield increased 2 percent, driven by increased demand for its economy service.
Higher demand for lower-priced economy service in all lengths of haul drove LTL shipments up 2 percent year-over-year in the quarter, the company said.
The LTL carrier’s profit soared as parent company FedEx reported an 8 percent drop in operating profit and a 12 percent drop in net profit for the quarter.
Thanks to global economic conditions, the transportation giant saw greater growth on the ground and in deferred services, such as FedEx International Economy.