Sept. 18--FedEx reported profit of $489 million Wednesday for the June-August quarter, slightly beating Wall Street earnings expectations amid a cost-reduction push and continuing challenges in the global economy.
The Memphis-based delivery giant and economic bellwether said it earned $1.53 a share, up from $$1.45 a share a year earlier. "Growth in overall demand for our broad global portfolio of solutions drove our improved first quarter results," FedEx leader Frederick W. Smith said in a release.
The chairman, president and chief executive officer added, "FedEx Express remains focused on reducing costs while facing challenging global economic conditions. Meanwhile, FedEx Ground continues to generate strong profitability on growing customer demand for its services."
The company also said it will raise U.S. rates for FedEx Express by an average 3.9 percent Jan. 6.
FedEx stood by an earlier forecast of 7-13 percent growth in earnings per share for the year that began June 1. The projection is based on the current market outlook for fuel prices, 2.1 percent growth in the U.S. gross domestic product and 2.6 percent growth in global economic output.
The forecast for capital spending in fiscal 2014 held steady at about $4 billion.
(c)2013 The Commercial Appeal (Memphis, Tenn.)
Visit The Commercial Appeal (Memphis, Tenn.) at www.commercialappeal.com
Distributed by MCT Information Services
Original headline: BRIEF: FedEx notches earnings of $1.53 a share
Most Popular Stories
- Dell Offers Undisclosed Number of Employee Buyouts
- Saab Gets Back into the Game; U.S. Auto Sales Soar
- American Airlines, US Airways Complete Merger
- Authorities Close to Deal with JPMorgan Chase over Madoff Response
- General Dynamics Plans 200 New Jobs in N.M.
- Unemployed Wait as Lawmakers Debate
- U.S. Stocks Rise on Sysco Acquisition
- Apple Activates Customer-Tracking iBeacon
- Tech Giants Call for Controls on Government Snooping
- 2013 Tech Gift Guide: iPad Mini Still Hot; Chromecast a Great Low-Cost Option