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FedEx 2Q Net Income Misses Estimates

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(credit: CBS)

(credit: CBS)

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MINNEAPOLIS (AP) — Rate increases helped FedEx Corp. post net income that was 14 percent 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 percent in premarket trading.

Revenue rose 3 percent 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 percent, 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.

(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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