FedEx Corp. said both its freight volume and earnings are rising sharply in the third quarter of fiscal 2002. The company said it expects earnings in the third fiscal quarter of 2002, which ends Feb. 28, to exceed its previously predicted range of 25 to 35 cents per diluted share.
CFO Alan B. Graf Jr. added that FedEx Ground's volume growth is expected to approach 20% this quarter and profits on that volume should increase about 5%. However, he said package growth at FedEx Express, the company's overnight delivery division, continues to be affected by economic weakness.
Additional traffic, mostly from FedEx's Priority Mail contract with the U.S. Postal Service, has helped offset the current softness in the express package business, Graf said.
Memphis-based Fed Ex also predicted its fourth quarter earnings will reach 70 to 80 cents per diluted share.