In this Monday, Dec. 2, 2013, file photo, a FedEx cargo plane sits on the tarmac outside the FedEx hub at Los Angeles International Airport in Los Angeles. FedEx Corp. reports quarterly financial results before the market opens on Wednesday, Dec. 18, 2013. (AP Photo/Jae C. Hong)
December 18, 2013 - 4:55 AM
MINNEAPOLIS - Rate increases helped FedEx Corp. post net income that was 14 per cent higher than a year earlier, when superstorm Sandy hurt business.
However, the second-quarter profit of $1.57 per share was lower than the $1.64 per share expected by analysts surveyed by FactSet.
Its shares fell 2 per cent in premarket trading.
Revenue rose 3 per cent to $11.4 billion, about what analysts were expecting.
FedEx raised its full-year profit outlook slightly.
Customers continued to shift toward cheaper ground deliveries and away from overnight air. FedEx's ground unit saw volume grow 8 per cent, while volume declined slightly in the U.S. for its air freight unit.
FedEx also noted that shipments for online orders after Thanksgiving will fall into a later quarter this year compared to last year.
News from © The Associated Press, 2013