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FedEx Net Income Increases 45 Pct.

March 23, 2000

MEMPHIS, Tenn. (AP) _ FedEx Corp. reported its third-quarter earnings rose 45 percent although soaring fuel costs raised its expenses by more than $100 million.

The overnight delivery company said Thursday its net income came to $113 million, or 39 cents per share, for the quarter ended Feb. 29, compared to $78 million, or 26 cents per share, in the same period a year ago.

The results beat the 34 cents per share in operating earnings forecast by analysts surveyed by First Call/Thomson Financial.

Revenue came to $4.5 billion, up 10 percent from $4.1 billion.

Company officials cited growth in the company’s International Priority service, where average daily volume increased 14 percent, for the strong results

Total average daily package volume grew 3 percent at FedEx Express, the world’s largest express transportation company, and 4 percent at FedEx Ground, North America’s second-largest provider of small-package ground delivery service.

The company’s overall performance was hurt by both higher fuel prices and severe winter storms in the United States, said executive vice president and chief financial officer Alan B. Graf Jr.

He said the company’s revised fuel forecast indicates fourth-quarter expenses could rise by more than $75 million compared to last year, but said FedEx expects to offset those increases with fuel surcharges to its customers.

For the first nine months of its fiscal year, FedEx reported earnings of $443 million, or $1.49 per share, up from $410 million, or $1.37 per share, a year ago.

Nine-month revenue came to $11.01 billion, up from $10.33 billion.

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