Posted on March - 29 - 2010

FedEx third-quarter profits exceed analysts’ expectations

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FedEx said a strengthening global economy and continued benefits of cost-cutting moves helped produce a $239 million profit in the third quarter.

Earnings were 76 cents a diluted share, up 145 percent over a year earlier, and slightly exceeded analysts’ expectations of 72 cents a share as recorded by Thomson One.

The rebound was led by daily package volume growth of 18 percent in FedEx International Priority, heavy on Asian exports, and 5 percent at FedEx Ground, mainly in the business-to-business shipping market.

The news would have been better without higher fuel costs, up 27 percent, and a $107 million operating loss at FedEx Freight. Officials said results also reflected additional costs of partial reinstatement of employee compensation programs slashed over the last couple years.

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