Cargo Business Newswire

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Thursday, March 22, 2012

Fedex Q3 profit beats estimates; remaining forecast lowered

The second largest freight delivery company beat estimates by analysts for third quarter earnings, reporting profit of $521 million, a big change from the $231 million posted for the same period a year earlier.

Fedex said in a statement that a strong holiday season and milder winter weather aided in the company’s increased profitability.

However, Fedex lowered its forecast for the rest of the year as global economic growth is projected to slow down and rising fuel costs loom.

“We just don't have as strong an economy as we would have hoped it would be a year ago," said Fedex Chief Financial Officer Alan Graf on a conference call.

"The economic environment and the elasticity that we're seeing on our premium services due to high fuel costs are dampening momentum a bit," he said.