OREANDA-NEWS. FedEx Corp. today reported earnings of USD 2.10 per diluted share for the first quarter ended August 31, up 37% from last year's USD 1.53 per share.

"FedEx Corp. is off to an outstanding start in fiscal 2015, thanks to very strong performance at FedEx Ground, solid volume and revenue increases at FedEx Freight and healthy growth in U.S. domestic volume at FedEx Express," said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer.  "More customers are relying on FedEx because they appreciate the competitive advantages provided by our broad portfolio of solutions."

FedEx Corp. reported the following consolidated results for the first quarter:
• Revenue of USD 11.7 billion, up 6% from USD 11.0 billion the previous year
• Operating income of USD 987 million, up 24% from USD 795 million last year
• Operating margin of 8.5%, up from 7.2% the previous year
• Net income of USD 606 million, up 24% from last year's USD 489 million.

Operating income increased primarily due to higher volumes and increased yields at all three transportation segments.  Results in the first quarter also include benefits from lower pension expense and the company's profit improvement programs.  These benefits were partially offset by higher aircraft maintenance expense due to the timing of certain engine maintenance events.

During the quarter, the company acquired 5.3 million shares of FedEx common stock.  As of August 31, 2014, no shares remained under the existing share repurchase authorizations.  Share repurchases benefited earnings in the quarter by USD 0.15 per diluted share.

FedEx reaffirmed its fiscal 2015 earnings forecast of USD 8.50 to USD 9.00 per diluted share.  The outlook assumes no net year-over-year fuel impact and continued moderate economic growth.  The capital spending forecast for fiscal 2015 remains USD 4.2 billion.

"FedEx reported strong first quarter results, as all three of our transportation segments drove higher revenues and improved profitability year over year," said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer.  "Our profit improvement programs are progressing as planned and we continue to expect strong earnings growth this year."

As previously announced, FedEx Express, FedEx Ground and FedEx Freight will increase shipping rates effective January 5, 2015.

FedEx Express will increase shipping rates by an average of 4.9% for U.S. domestic, U.S. export and U.S. import services.

FedEx Ground and FedEx Home Delivery will increase shipping rates by an average of 4.9%.  In addition, as announced in May, FedEx Ground will also begin applying dimensional weight pricing to all shipments.

FedEx Freight will increase shipping rates by an average of 4.9%.  This rate change applies to eligible FedEx Freight shipments within the U.S. (including Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands), between the contiguous U.S. and Canada, within Canada, between the contiguous U.S. and Mexico, and within Mexico.