FedEx on Wednesday reported revenue of $11.4 billion during the second quarter of its fiscal year, up 3 percent from the second quarter of last year, and an income of $500 million, up 14 percent, year over year.
Operating income finished the quarter at $827 million, up 15 percent from $718 million in the 2012 period.
FedEx also said it is increasing its forecast of full-year, earnings-per-share growth to 8 percent to 14 percent above last year's adjusted results, compared to its previous growth range of 7 percent to 13 percent. During the second quarter, FedEx recorded earnings of $1.57 per diluted share, compared to $1.39 per share during the same period in 2012.
"FedEx posted solid second-quarter earnings, reflecting improved performance at FedEx Express, as the profit improvement plan introduced more than a year ago continues to gain momentum," stated Frederick Smith, FedEx chairman, president and chief executive officer.
Alan Graf, Jr., FedEx executive vice president and chief financial officer, added that the company is "on track to deliver a solid increase in earnings this fiscal year."
The FedEx Express segment reported a slightly lower revenue of $6.84 billion, and an operating income of $326 million, up 42 percent from the $230 million it recorded a year ago. FedEx said revenue in this sector decreased slightly due to lower express freight revenue and lower fuel surcharges.
FedEx Ground for the second quarter reported a 10-percent increase in revenue from last year, at $2.85 billion, and an operating income of $424 million, up 3 percent from $412 million a year ago. Operating income increased due to higher volume and revenue per package. Operating margin declined primarily due to this year's later start of the holiday shipping season, as Cyber Week occurred in December this year.
For the second quarter, the FedEx Freight segment reported a revenue of $1.43 billion, up 4 percent from last year, and an operating income of $77 million, up 1 percent.
Less-than-truckload average daily shipments and weight per shipment increased 4 percent and 2 percent, respectively. LTL revenue per hundredweight decreased 1 percent, primarily due to lower fuel surcharges, higher weight per shipment and shorter length of haul, FedEx said.