OREANDA-NEWS. For the first quarter, the FedEx Ground segment reported:
* Revenue of USD 3.83 billion, up 29% from last year's USD 2.96 billion
* Operating income of USD 537 million, down 1% from USD 545 million a year ago
* Operating margin of 14.0%, down from 18.4% the previous year.

Revenue increased due to the inclusion of GENCO results, the recording of FedEx SmartPost service revenues on a gross basis versus the previous net treatment, and higher ground revenue per package and volume. FedEx Ground average daily volume, including FedEx SmartPost shipments, grew 4% in the first quarter due primarily to continued growth in FedEx Home Delivery. FedEx Ground yield increased 11% due to the recording of FedEx SmartPost revenues on a gross basis, higher dimensional weight charges and increased rates, partially offset by lower fuel surcharges.

Operating income decreased slightly due to increased self-insurance reserves, and higher-than-expected operating costs due in part to larger package sizes. These factors more than offset the benefits from higher revenue and one additional operating day. Operating margin decreased primarily due to increased self-insurance reserves, the inclusion of GENCO results and the change in FedEx SmartPost revenue reporting, which collectively reduced year-over-year operating margin by 4.0 percentage points.