FedEx reports 11 percent increase in quarterly earnings

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Posted 12:46PM on Wednesday, March 20, 2002

MEMPHIS, Tenn. - FedEx Corp. reported an 11 percent increase in its third quarter earnings Wednesday, largely due to growth in the company's ground delivery business. The Memphis-based company said increases in home deliveries and business with small to medium size corporate customers also helped boost earnings. FedEx earned $120 million, or 39 cents a share, for the three months ended Feb. 28 compared with $108 million, or 37 cents a share, a year ago. The results beat Wall Street estimates of 37 cents a share for the latest period, according to a survey by Thomson Financial/First Call. Revenue rose to $5 billion from $4.8 billion a year ago. "Our sales force is now better equipped and trained to cross-sell both express and ground services," said Frederick W. Smith, FedEx's founder and chairman. Smith said FedEx sees signs of a general recovery for the national economy, though manufacturing and wholesale sectors are still lagging. Smith said the manufacturing and wholesale business is particularly important to an express delivery company like FedEx. "If and when those sectors pick up, express volumes should correspondently rise," Smith said. Smith said FedEx is expanding its business alliance with the U.S. Postal Service which should increase the company's express business in the coming quarters. For the first nine months of its fiscal year, FedEx earned $474 million, or $1.56 a share, versus $471 million, or $1.62 a share, a year ago. Revenue rose to $15.2 billion from $14.5 billion a year ago. FedEx shares were down 59 cents at $57.14 in aftrenoon trading Wednesday on the New York Stock Exchange. ------ On the Net: FedEx: www.fedex.com