FedEx Corp. reported healthy first quarter earnings across the board today, but announced also announced a shipping rate increase.
The Memphis, Tenn.-based logistics company reported earnings of $1.53 per diluted share for the first quarter ended Aug. 31, compared to $1.45 per share last year.
Revenue and earnings increased during the quarter, driven by solid performance at each of the company’s transportation segments.
FedEx (NYSE: FDX) reported revenue of $11 billion, up 2 percent from $10.8 billion last year. Operating income was $795 million, up 7 percent from $742 million last year, while the company’s operating margin was 7.2 percent, up from 6.9 percent the previous year.
Net income was $489 million, up 7 percent up from last year’s $459 million.
“Growth in overall demand for our broad global portfolio of solutions drove our improved first quarter results,” said Fred Smith, FedEx’s chairman, president and CEO. “FedEx Express remains focused on reducing costs while facing challenging global economic conditions. Meanwhile, FedEx Ground continues to generate strong profitability on growing customer demand for its services.”
Chief rival Atlanta-based United Parcel Service Inc. (NYSE: UPS) reported in July its second-quarter profit dipped 4 percent to $107 million following market conditions and shipper preferences that impacted negatively its freight forwarding and international business.