Fedex Logs Record Revenue on Surge in Packages
16 September 2020 - 7:15AM
Dow Jones News
By Paul Ziobro
Christmas came in July for FedEx Corp. The delivery company
posted the highest quarterly revenue in its history as the
coronavirus pandemic spurred residential-delivery levels normally
seen during the holiday season.
The company shipped 31% more packages a day through its Ground
network during the summer months. The extra cargo boosted profit by
more than 60% in the three months ended Aug. 31.
Volumes surged as online shopping soared during pandemic
restrictions on retailers, with more consumers buying everything
from toothpaste to toilet paper online. That has primarily been a
boon to the FedEx Ground business, which handles most of the
company's shipments tied to online shopping.
Meanwhile, the Express business that ships packages and cargo by
air has also received a boost from the sharp decline in
international passenger flights, which used space in their bellies
to ferry shipments across the globe. International volume in the
Express business rose 16%.
For the quarter, FedEx reported earnings of $1.25 billion,
compared with $745 million a year earlier. Excluding certain
expenses, the company said earnings per share were $4.87. On that
basis, analysts were expecting earnings of $2.70 a share.
Revenue rose 13% to $19.3 billion from a year ago.
FedEx shares were up more than 9% in after-hours trading.
Write to Paul Ziobro at Paul.Ziobro@wsj.com
(END) Dow Jones Newswires
September 15, 2020 17:00 ET (21:00 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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