FedEx posted $1.25B profit as business deliveries improved

NEW YORK (AP) — FedEx earned $1.25 billion in its latest quarter, as online shopping remained popular among customers avoiding stores and shipments between businesses improved.

The delivery giant reported Tuesday that it brought in $19.3 billion in revenue during the three months that ended Aug. 31, FedEx's fiscal first quarter.

Many people are shopping online during the pandemic, which is helping some delivery companies. But delivery to homes is less profitable than those between businesses, and business deliveries slowed as the pandemic dragged on and some establishments remained shuttered.

The Memphis-based company did not provide an outlook for the full 2021 fiscal year.

“While business demand improved in the first quarter, continued uncertainties cloud our ability to forecast full-year earnings,” said Alan B. Graf, Jr., FedEx's chief financial officer.

Revenue in its core Express segment grew to $9.65 billion in the quarter, up from $8.95 billion at the same time last year. Its Ground service grew to $7.04 billion in revenue, up from $5.18 billion at the same time last year.

FedEx is raising its shipping rates by 4.9% for its Express, Ground and Home Delivery services and 4.9% to 5.9% for Freight, beginning in January.

It also has said it plans to hire up to 70,000 seasonal workers to handle extra holiday deliveries, a jump from 55,000 last year.