Despite a year-over-year drop in its margin, which the company attributed to fuel costs, revenue growth at Moon-based FedEx Ground topped all divisions of its parent company FedEx Corp. in the first quarter.
FedEx Corp. reported this morning that profit in the first quarter rose 7 percent to $489 million, or $1.53 per share, from $459 million, or $1.45 per share, a year ago.
That's better than the $1.50 per share analysts expected, according to a survey by Thomson Reuters.
Revenue increased 2 percent to $11 billion from $10.79 billion last year.
The FedEx Ground unit posted a 11 percent revenue increase year-over-year, to $2.73 billion.
FedEx Ground's average daily volume was up 11 percent and saw a 1 percent rise in revenue per package, according to the earnings release.
The strongest boost to the Ground division came from e-commerce, company executives said in a conference call after the earnings were released.
"We're uniquely positioned in the marketplace to capture our share of e-commerce," FedEx Ground CEO Henry Maier said during the call.
Maier said 90 percent of FedEx Ground's capital expeditures will expand the unit's capacity, including building new hubs.
FedEx (FDX) stock price was up 2.2 percent in pre-market trading this morning.breaking - businessnews