FedEx tops forecasts but warns on Europe impact

City A.M. Reporter
A STRONG holiday season and mild winter helped FedEx top Wall Street’s profit forecast, but the world’s second-largest package delivery company warned that it had lowered its expectations for the rest of this year due to Europe’s weak economy.

“The fourth quarter is still very good, but what we’re seeing at the moment is we just don’t have as strong an economy as we would have hoped it would be a year ago,” finance chief Alan Graf said.

FedEx said yesterday that net earnings in the third quarter to 29 February rose to $521m (£329.4m), or $1.65 per share, from $231m, 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.

Revenue increased nine per cent to $10.56bn from $9.66bn a year ago.