FedEx Corp., the second- largest U.S. package-shipping company, said fiscal second- quarter profit climbed 33 percent as deliveries rose around the world and the company raised surcharges to cover higher fuel prices.
Net income rose to $471 million, $1.53 a share, from $354 million, $1.15 a share, a year earlier, the Memphis, Tenn.- based company said Wednesday. Earnings exceeded the average estimate of analysts, and FedEx increased its full-year forecast for a second time.
FedEx is benefiting from an increase in shipments from Asia and China, where the value of goods traded with the U.S. has risen 25 percent this year. Shipments by businesses grew in the quarter even as the company charged customers more to help offset the rising price of fuel.
“We continue to see year- over-year economic growth in the U.S. and Asian economies,” chief executive Fred Smith told analysts and investors on a conference call. “Business orders remain strong, and the labor market is improving steadily.”
The company said it expects third-quarter profit of $1.15 to $1.30 a share. FedEx is expected to earn $1.23, according to a Thomson Financial survey of 14 analysts.
