Fedex delivers lower profits

US COURIER FedEx delivered below-expectation second quarter results as additional costs outweighed strong trading, it said yesterday.

Profits fell 18 per cent to $283m (£180m) from $345m a year earlier despite revenues rising 12 per cent to $9.63bn. Asian market growth and a global economic recovery pushed overseas volumes to a record high, it said. But costs rose as it reinstated employee benefits and coped with rising fuel prices.

Fedex raised its full-year profit forecast, saying holiday delivery volumes were unexpectedly strong.