FedEx Corp reported a net profi t of $2.02 billion for fi scal year ended May 31, up 12 percent from the $1.81 billion earned in the yearearlier period. The company credited the result to "strong" volume growth at its FedEx Ground segment and "continued" revenue growth for FedEx Express International Priority products. Chairman, president and CEO Frederick Smith called the profi t"solid", but added that thecompany was "restrained bya slowing US economy. Theweakened industrial sectoris currently limiting demandfor transportation services,but we expect the US economyto begin to show modestyear-over-year improvementin the late summer to earlyfall timeframe."
Full-year revenue rose 9 percent to $35.2 billion while operating income climbed at the same rate to $3.28 billion. Fiscal fourth-quarter profi t of $610 million represented a 7 percent increase over the year-ago period.
The company said that the results were helped by the benefi t from the company’s settlement with Airbus over the delayed and later cancelled A380 freighter order, although improvement was mitigated by a "softening global economy," high fuel prices and the launch of next-business-day domestic express service in China at the end of May.