FedEx ups 2010 forecasts as Asia boosts exports

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.