US' second largest package shipping giant FedEx has reduced its full-year forecast despite its first quarter net profit from June to August increase 22% to USD$464 million drawn on revenues of $10.52 billion, according to the Shipping Gazette.
Its overall net profit increased 11% from $9.46 billion last year helped by strong FedEx Ground and FedEx Freight results.
The ground transportation unit brought in profit of $407 million from a revenue increase to $2.3 billion, a 16% with its daily package volume up by 5%.
Its FedEx Express arm experienced a decline in its international shipments of 4% year on year, due in part to slowing demand from Asia. This was despite an increase in revenue of 12%, which was partly offset by per package price increases that enhanced revenue.
FedEx Express will increase shipping rates by a net average of 3.9% for US domestic, US export and US import services effective January 2, 2012.
The full average rate increase of 5.9% will be partially offset by adjusting the fuel price threshold at which the fuel surcharge begins, reducing the fuel surcharge by two percentage points.
The FedEx Ground and FedEx SmartPost pricing changes for 2012 will be announced later this year. FedEx Freight implemented a 6.75% general rate increase on September 6. Source: Shipping Gazette