FedEx reports mixed third-quarter financial year results

FedEx has reported financial results for the third quarter of its current financial year, the three months that ended on February 28.
Revenue was up to $16.5bn from $15bn in the same quarter of 2017, while operating income fell very slightly to $1bn.
According to Frederick Smith, FedEx Corp chairman and chief executive: “Execution of our long-term growth strategies, customer demand for the unique value of our broad portfolio of solutions and healthy growth in the global economy are driving our performance.”
And looking to the current quarter, he added: “We expect strong operating performance in each of our transportation segments in the fourth quarter.”
FedEx Ground and FedEx Freight both enjoyed increased cargo volumes.
In the former division, strong revenue growth was driven by average daily package volume growth of 6% and higher base rates.
Meanwhile, the segment’s operating result improved due to the benefits of that strong revenue growth and ongoing cost management.
In the FedEx Freight segment, revenue increased thanks to less-than-truckload (LTL) revenue per shipment growth of 8% and an average daily LTL shipment growth of 6%.
Operating results in this division improved primarily due to the benefit of higher LTL revenue per shipment.
Last week, FedEx confirmed that it is to invest over $1bn in its Memphis hub, the project including the construction of a new sorting facility with state-of-the-art systems, the construction of a bulk truckload building and the development of a new area to process the increasing number of oversized shipments that are being handled as a result in burgeoning e-commerce business.
Construction is scheduled to begin in 2019 and is expected to be completed by 2025.
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