OREANDA-NEWS. For the first quarter, the FedEx Ground segment reported:

• Revenue of USD 2.96 billion, up 8% from last year's USD 2.73 billion

• Operating income of USD 545 million, up 13% from USD 483 million a year ago

• Operating margin of 18.4%, up from 17.7% the previous year

FedEx Ground average daily volume grew 6% in the first quarter, primarily driven by growth in e-commerce.  Revenue per package increased 3% due to increased rates and higher residential and fuel surcharges.  FedEx SmartPost average daily volume decreased 10% due to the reduction in volume from a major customer.  SmartPost revenue per package increased 10% due to rate increases and improved customer mix, partially offset by higher postage rates. 

Operating income increased due to higher revenue per package and volume, partially offset by increased network expansion costs.