Truckers and railroad companies aren't faring much better than FedEx. September is one of the most critical months of the year for freight companies because it marks the end of the back to school rush and the start of the holiday season. This year, the normal peak shipping season has been soft as retailers carry less inventory and freight prices fall because of waning demand.
In the three months that ended in August, FedEx Corp. earned $459 million, or $1.45 per share. That hit the top end of its recently lowered estimate. Revenue rose 3 percent to $10.79 billion. It earned $464 million, or $1.46 per share, on revenue of $10.52 billion in the same quarter a year ago.
The company's ground unit performed better in the first quarter as it benefited from customers trading down. Operating income in the company's ground segment rose 9 percent on an 8 percent increase in revenue.
AP Economics Writer Martin Crutsinger contributed to this report.
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