FedEx shows modest gain; 3Q profit up

NEW YORK (AP) — FedEx is indicating the global economic recovery is gaining steam.

The world's second-largest package delivery company said today its fiscal third-quarter profit more than doubled from a year earlier. FedEx also raised the forecast for full-year earnings — bringing it in line with Wall Street's projections — on expectations of "a continued modest recovery in the global economy."

The company, considered an economic bellwether because of the variety of products it ships, said it earned $239 million, or 76 cents per share, compared with $97 million, or 31 cents per share a year earlier.

Revenue rose 7 percent to $8.70 billion. The results exceeded Wall Street expectations for earnings of 72 cents per share and revenue of $8.37 billion. Shares were down about 2 percent in pre-market trading, but they had risen 4 percent this week ahead of the report.

The company, based in Memphis, Tenn., said results were boosted by higher shipping volume, particularly at its international express and ground units.