FedEx Corp. profi t rose 4 per cent in its fi scal fi rst quarter but saw its domestic express traffi c fall and reported a sharp 30 per cent decline in the operating profi t for its FedEx Freight LTL trucking business. For the fi rst quarter, the FedEx Freight segment reported revenue of US$1.23 billion, up 22 per cent from last year’s $1.01 billion. But operating income of $105 millionwas down 30 per cent.

FedEx blamed a weaker US economy for the setbacks and said it is shrinking some FedEx Freight operations until it sees a turnaround inthe market.

"While the U.S. economy is growing at a moderate pace, recent fi nancial market volatility and high energy costs have increased the uncertainty surrounding the near-term economic outlook, and weakness in the housing sector continues," said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief fi nancial offi cer.

Domestic package volume and revenue in the US declined 1 per cent, refl ecting the continued impact of the slowing economy, lower fuel surcharges and a customer shift to lower-yielding services.