FedEx profit rises as volume softens, shares up

By:  Reuters
04:24 06/23/2022

LOS ANGELES (Reuters) -FedEx Corp reported higher quarterly earnings on Thursday, despite persistent labor woes and softening demand in its Ground unit that handles the bulk of its e-commerce home deliveries and drives the company's growth.

Shares in the company, which are down roughly 20% from a year ago, jumped 3.7% to $236.52 in extended trading.

Memphis, Tennessee-based FedEx's adjusted net income for the fiscal fourth quarter ended May 31 was $1.8 billion, or $6.87 per share, up from $1.36 billion, or $5.01 per share, a year earlier.

Revenue grew to $24.4 billion from $22.6 billion a year earlier, boosted in part by fuel surcharges.

FedEx issued a full-year forecast for earnings per share of $22.50 to $24.50 excluding items. It set capital spending at $6.8 billion, with a priority on investments to improve efficiency, increase automation and modernize vehicles and facilities.

Last week, FedEx expanded its board under a cooperation agreement with activist investor D.E. Shaw Group, which has a 1% stake in the company.

(Reporting by Lisa Baertlein in Los Angeles; editing by Jonathan Oatis and Cynthia Osterman)

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