FedEx Corp. said customer defections from other domestic and foreign document and parcel shippers and its strategic alliance with the U.S. Postal Service helped to boost first quarter revenues by 8% to $5.45 billion from last year’s $5.04 billion.
Net income for the quarter jumped by 20% to $158 million from $109 million a year earlier.
First quarter operating income rose 20% to $283 million from $235 million a year ago, the nation’s second largest document and parcel shipper said.
The Memphis, TN-based shipper attributed the growth in revenue “primarily from incremental U.S. Postal Service (USPS) transportation agreement services and growth in FedEx International Priority volume.”
Two years ago FedEx and the USPS agreed to share express and ground deliveries. Under the agreement letter carriers for the USPS will deliver residentially-addressed FedEx packages and the USPS will use FedEx’s huge jet fleet to carry Priority and Express Mail at low rates.
The company said that the agreement helped to boost to the total average daily package volume for FedEx Express and FedEx Ground by a combined 11% over the quarter.
FedEx Express first quarter revenues rose 5% to %4.93 billion from $4.74 billion while FedEx Ground revenues swelled by 33% to $826 million from $623 million.
During the same period FedEx Freight revenues inched up 4% to $533 million from $511 million.
In a statement commenting on the first quarter’s financial results, Alan B. Graf Jr., executive vice president and CFO, said that the company’s strategy “continues to produce solid improvements in the company’s financial results and service performance as customers increasingly look to FedEx as their single source provider for a variety of shipping needs.”
Several days ago the company announced the opening of 50 new home delivery terminals in 24 states to enhance its delivery service for catalogers and online retailers.
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