William B. Cassidy | Mar 17, 2011 10:55AM EDT
FedEx Ground outdistanced its sister divisions at Memphis-based FedEx, increasing revenue 14 percent and operating profit 26 percent in the quarter ending Feb. 28.
A 6 percent increase in daily package volume helped boost FedEx Ground revenue for the quarter to $2.18 billion, while its operating profit rose to $325 million.
That gave FedEx Ground a 14.9 percent operating margin, compared with a 2.9 percent operating margin at FedEx Express, which saw profits fall from a year ago.
Revenue at FedEx Express rose 11 percent to $6.1 billion in the December-February quarter, while operating income dropped 33 percent to $178 million.
International package volume fueled growth in the quarter, increasing 5 percent compared with a 2 percent increase in domestic express package volume.
Net income at FedEx dropped 3 percent year-over-year to $231 million in the quarter ending Feb. 28, although revenue rose 11 percent to $9.7 billion.
-- Contact William B. Cassidy at wcassidy@joc.com.