FedEx’s Quarterly Earnings Rise 13%

FedEx Corp. said its fiscal second-quarter earnings rose 13% to $194 million, or 67 cents a share, in line with its upwardly revised expectations, on higher productivity, cost controls and continued growth in its international shipments. Revenue rose 7% to $4.9 billion. FedEx, the largest air-express package shipper, also said it would announce a price increase at the end of month. The company said the slowing U.S. economy and harsh winter weather began cutting into domestic growth rates in December, and it forecast that earnings for the full year would be below prior expectations. The Memphis, Tenn.-based company said last week that it would earn 67 cents a share in the second quarter, higher than analysts’ consensus forecast of 64 cents, but it also said that full-year earnings would be lower than analyst expectations. The company now expects earnings of 35 cents to 40 cents for the fiscal third quarter and 90 cents to $1 for the fourth quarter, assuming the slowing economy has a “soft landing” rather than a sharp downturn. Analysts on average had expected earnings of 41 cents and 89 cents, respectively. Shares of FedEx closed off 50 cents at $37.25 the NYSE.