FedEx Profit Rises 11% on Ground Shipments
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FedEx Corp. said fiscal third-quarter profit rose 11% because it shipped more packages by truck and carried more mail for the U.S. Postal Service.
Net income for the period ended Feb. 28 climbed to $120million, or 39 cents a share, from $108 million, or 37 cents, a year earlier. Sales increased 3.7% to $5.02 billion.
Shipments rose 21% at Fed- Ex Ground because it delivered more goods ordered via the Internet during the holidays. The unit is taking package shipments from the Postal Service and United Parcel Service Inc. as it offers new products and more business customers switch from air delivery to less expensive shipments by truck during the recession, analysts said.
Results beat analysts’ average forecast of 37 cents.
Shares of Memphis, Tenn.-based FedEx fell 93 cents to close at $56.80 on the New York Stock Exchange.
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