FedEx Shows Huge Revenue Growth

Big division winners include FedEx Ground, with revenues of $1.07 billion, up 17% year over year. Daily package volume for the division was up 16%, although it experienced a lower weigh per package. To be included in future result reports for FedEx Ground are earnings of Parcel Direct, a parcel consolidator that was purchased by FedEx on September 12. Parcel Direct allows FedEx to handle lower-weight less time-sensitive shipments to residences through the U.S. Postal Service.

FedEx Freight enjoyed first quarter revenues that were up 27% year over year. The division saw average daily less-than-truckload shipments increase some 14%.

FedEx Express grew 12% for the quarter. Its International Priority revenues grew 25% in the quarter with average daily package volume up 13% with an average gain in weight per package.

U.S. domestic package yield was up 6%, though daily package volume was down 2%, average weight per package and average rate per pound were both up.

Exports to China increased 52% in the quarter. The division is looking forward to handling even more Chinese business as it received tentative approval from the U.S. Department of Transportation for 12 new flights into China, which will bring the total to 23 weekly flights to that country.