Loading... Please wait...

FedEx Ground Shining Star of FedEx Corp.


September 18, 2013

It was reported this morning that Moon Township, PA based FedEx Ground topped all FedEx Corp company divisions in Q1 revenue growth.

FedEx Ground saw an 11 percent increase in revenue to $2.73 billion in the quarter ended Aug. 31. Its profit  jumped 7 percent to $489 million, with average daily volume up 11 percent and an increase in revenue of 2 percent to $11 billion from $10.79 billion last year.

The biggest boost to the Ground division came from e-commerce, company executives said in a conference call after the earnings were released.

"We think we're uniquely positioned in the marketplace to capture our fair share of e-commerce," FedEx Ground CEO Henry J. Maier said during a conference call with analysts Wednesday after FedEx (NYSE: FDX) released its first-quarter financials. He also stated that 90 percent of FedEx Ground's capital expeditures will go toward expanding the unit's capacity, including building new hubs.