FedEx Ground Shipments (U.S.) Up 21%

Despite a falloff in its core air express business, FedEx reported on Mar. 20 that earnings for the quarter ended February soared to $120 million, an 11% increase over a year earlier. While domestic air express revenues dropped 5%, the Memphis shipper saw its quarterly ground shipments jump 21% over 2001. The reason: Recession-induced cost-cutting has led many FedEx customers to shift to ground delivery, which is three to five times less expensive than air delivery.