FedEx 4th Quarter Results and Outlook for FedEx Ground.
FedEx Ground Segment
For the fourth quarter, the FedEx Ground segment reported:
Revenue increased due to a 10% increase in FedEx Ground volume and a 7% improvement in revenue per package driven by the recording of FedEx SmartPost revenues on a gross basis versus the previous net treatment. Revenue per package was also favorably impacted by increased rates, partially offset by lower fuel surcharges.
Operating income grew due to higher volumes and increased revenue per package as well as the benefit of one additional operating day. These factors were partially offset by higher operating costs and network expansion expenses. Operating margin decreased due to the change in FedEx SmartPost revenue reporting.