PACKAGE delivery giant FedEx raised its outlook and posted sharply higher profit yesterday, but its shares fell as its domestic volume numbers disappointed investors’ hopes for a US economic recovery.
Profit for its fiscal third quarter ended 28 February was $239m, or 76 cents per share, up from $97m, or 31 cents per share, a year earlier. Revenue rose seven per cent to $8.7bn.
FedEx’ international priority average daily package volume increased 18 per cent, led by exports from Asia. But its domestic average daily package volume grew only one per cent.
Memphis-based FedEx raised its earnings forecast for the full year to a range of $3.60 to $3.80 a share, from a previous view of $3.45 to $3.75.
FedEx is considered a bellwether of US economic activity. When the economy does well, companies and consumers ship more goods; in a recession, package volumes drop.