FedEx 2Q earnings up 33 percent

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FedEx Corp. announced Wednesday, Dec. 21 that its second-quarter profit jumped 33 percent, with overall profit increasing to $471 million, up from $354 million recorded in the same quarter in 2004. Revenue grew 10 percent to $8.09 billion from $7.33 billion.

Early in the quarter ending Nov. 30, business was slower than anticipated for FedEx Ground, the company’s primary trucking division. But it picked up toward the end of the period, says Mike Glenn, FedEx vice president for market development. “Revenue management is really the watchword for us at this point,” Glenn says.

Memphis, Tenn.-based FedEx says revenues for Internal Priority shipments grew by 14 percent, while overall revenues for FedEx Express and Ground increased by 11 percent. The growth for FedEx Express is largely due to an intertwined system of shared resources for its domestic and international operations, says FedEx chief executive Frederick W. Smith. “You have to look at Express as a worldwide network even though we have to report it as ‘domestic’ and ‘international’,” Smith says. “It’s really a single network.”