FDX’s Earnings Drop Smaller Than Expected

FDX Corp.’s fiscal first-quarter earnings fell 9.7%, a smaller drop than expected from last year’s profit surge caused by the strike at rival United Parcel Service of America Inc. The world’s top air-freight company, and parent of Federal Express, said net income slid in the quarter ended Aug. 31 to $149 million, or $1 a diluted share, from $165 million, or $1.11 a diluted share, in the year-earlier period. Revenue rose 5.4% to $4.08 billion from $3.87 billion. The company was expected to earn 96 cents a share, the average estimate of analysts surveyed by First Call Corp. FDX shares rose $1.38 to close at $51.38 on the NYSE. A 15-day Teamsters strike at UPS last year gave FDX extra business, boosting earnings about 25 cents a share in the year-earlier quarter. Excluding that surge, the latest quarterly profit at Memphis, Tenn.-based FDX was solid because of low fuel costs and strong U.S. shipments, analysts said.