Chicago: FedEx Corp posted a better-than-expected quarterly profit on cost cuts and said it would raise rates next year for express shipping, a business that has suffered as customers shift to slower but cheaper delivery options.
The company, considered an economic bellwether because of the massive volume of goods it moves around the world, said yesterday it earned $489m, or $1.53 a share for its first quarter that ended on August 31.
FedEx also backed its profit view for the year, sending its shares up three percent in premarket trading. FedEx said express shipping rates would increase an average 3.9 percent for U S domestic and international services, effective January 6. Rate increases for its ground courier facilities will be announced later this year, the company said.
Reuters
