FedEx reports strong third quarter growth

FedEx has announced its financial results for the third quarter of its 2014 financial year ended February 28, 2015. It reported revenue of $11.7bn, up by 4% year-on-year. The company also recorded operating income of $962m, an increase of 50% over Q3 2013. Accordingly FedEx’s margin stood at 8.22%.

“We had a very successful peak season as volumes grew across all transportation segments, and our profit improvement programmes are moving ahead as scheduled,” said Frederick Smith, FedEx’s Chairman, President and Chief Executive Officer.

Operating results improved due to volume and base yield growth in all three transportation segments, a significant net benefit from fuel, benefits from profit improvement programme initiatives, a lower year-over-year weather impact and reduced pension expense. These improvements were partially offset by higher variable incentive compensation accruals.

More to follow.