US delivery giant FedEx Express posted a 45 per cent year-on-year quarterly operating profit increase to US$545 million, drawn on revenues of $6.59 billion, which declined four per cent, according to Shipping Gazette.
Overall, Memphis-based FedEx Corp posted a six per cent net profit increase to $692 million in the first financial quarter, drawn on revenues of $12.3 billion, which increased five per cent year on year.
FedEx Express attributed its revenue loss to unfavourable currency exchange rates and a drop in fuel surcharges, which more than offset improvements in base rates.
FedEx Ground's revenues stood at $3.83 billion, a year-over-year increase of 29 per cent, attributed to the inclusion of results of GENCO, a third-party logistics provider FedEx acquired in January.
To which were added revenues of FedEx SmartPost service revenues on a gross basis versus the previous net treatment.
FedEx Freight's revenues, which stood at $1.6 billion, remained flat in comparison to last year.
Said CEO Frederick Smith: "FedEx Corp is performing solidly given weaker-than-expected economic conditions. Our profit improvement programme is on track and delivering impressive results."
Said chief financial officer Alan Graf: "Our new fiscal 2016 outlook is modestly lower than our initial forecast due primarily to weaker LTL. We still expect strong earnings growth this year."
US domestic package volume grew one per cent, driven by growth in deferred box and overnight envelope. US domestic revenue per package fell three per cent on lower fuel surcharges, partially offset by strong base rates.
FedEx International Economy volume grew four per cent, while FedEx International Priority volume decreased five per cent.
-
Company DirectoryFreight RateExport RateAgency PartnershipCargo Leads