FedEx 2Q net income misses estimates

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Associated Press

Posted on December 18, 2013 at 8:00 AM

Updated Wednesday, Dec 18 at 8:02 AM

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.

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