FedEx third quarter outlook surges on overseas demand

MEMPHIS express giant FedEx increased its profit outlook for the quarter ending in August despite its earlier gloomy summer forecast with recovery of overseas shipments driving growth 20 per cent, said the company's chief financial officer Alan Graf.

Wells Fargo Securities economist said international priority shipments growth will be a great benefit to the air freight sector. "Growth in Asia has been red hot, fuelled by the tech sector and iPhones and handheld devices," Mark Vitner told Bloomberg.

In response to air freight demand on longer routes to Asia the company will buy six more Boeing 777F at a cost of US$1.51 billion as taken from list price. Recession stops on matching employee contributions to 401(k) retirement accounts will be restored given the robust growth in the quarter.

According to a Bloomberg survey taken from an average of 17 estimates analysts projections for the third quarter FedEx earnings were at $1 a share off its present range of $1.05 to $1.25 a share, and almost double its earnings year on year at US$181 million.
(Source:www.schednet.com)