MEMPHIS, Tenn., Thu Mar 22, 2012 – FedEx Corp. reported higher quarterly profit that beat estimates, citing higher revenue per package and record holiday shipping, and forecast further advances in the current quarter.
A lower tax rate and mild winter weather as well as fuel surcharges also drove profit up, the world’s second-largest parcel delivery company said.
FedEx said on Thursday that net earnings in the third quarter ended February 29 rose to $521 million, or $1.65 per share, from $231 million, or 73 cents a share, a year earlier.
Excluding one-time items, profit rose to $1.55 per share from 81 cents a year ago.
“FedEx Corp. results were driven by improving yields, record holiday package shipping and exceptional performance at FedEx Ground,” said Frederick W. Smith, FedEx chief executive officer, in a statement. “We expect our solid performance to continue in our fourth quarter, capping off a strong fiscal year.”
Revenue increased 9 percent to $10.56 billion from $9.66 billion a year ago. Analysts on average were expecting $10.6 billion, on average, according to Thomson Reuters I/B/E/S.