FedEx, the US parcel delivery company, posted a 35 per cent increase in annual year on year net profit to US$2.1 billion, drawn on revenues of $45.6 billion, up 2.9 per cent, according to Shipping Gazette.
Quarterly operating profit at FedEx Express rose three per cent to $475 million year on year, drawn on revenues of $7 billion, up 0.28 per cent. FedEx Ground quarterly operating profit was up five per cent to $586 million, drawn of $3.01 billion up eight per cent.
The newer, smaller Freight division posted a 51 per cent increase in quarterly operating profit to $122 million, drawn on revenues of $1.5 billion, up 12 per cent.
FedEx attributed higher profits to better rates per package, increased volumes and lower pension expenses, which more than offset the effect of reduced fuel surcharges and lower revenue from carrying air freight.
FedEx CEO Fred Smith said an "outstanding" fourth quarter had helped the company to post solid full-year results. "We believe we are well positioned for a strong fiscal 2015," he said.
Said chief financial officer Alan Graf: "Fiscal 2014 was a good year for FedEx and we expect fiscal 2015 to be even better."
Both FedEx and rival UPS have struggled with a combination of slow trade growth and customers' shift towards lower-cost deferred air and ground forms of transport, as well as global air freight overcapacity, said London's Financial Times.
FedEx's outlook for the new year includes aircraft deliveries to support fleet modernisation and to continue expansion of the FedEx Ground network which management attributed to market share gains, noted the UK's Transport Intelligence.
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