Tag: USA

FedEx has reported stronger-than-expected third-quarter results, registering double-digit growth in ground deliveries and international shipments.

However, the Memphis, Tenn.-based company warned the rising price of oil could crimp fourth-quarter margins.

Net income for the third quarter ended Feb. 28 rose 53 percent, reaching USD317 million, or USD1.03 per share, compared with USD207 million, or 68 cents, earned in the year-ago period.

Operating income received a boost from the timing of fuel surcharges as costs declined, FedEx said.

Quarterly revenue rose 21 percent, reaching USD7.34 billion from USD6.06 billion.

According to estimates compiled by Thomson First Call, analysts had been looking for a third-quarter profit of 98 cents a share on revenue of USD7.19 billion.

Several delivery drivers filed a class-action lawsuit against FedEx Corp. Monday, alleging the company violates South Dakota law by treating drivers as independent contractors instead of employees.

The suit in South Dakota state court claims FedEx failed to reimburse the drivers for job-related expenses, and avoided paying workers’ compensation and unemployment insurance, said attorney Matthew Tobin, of the Sioux Falls firm Johnson, Heidepriem, Miner, Marlow and Janklow LLP.

“This lawsuit is about fundamental fairness, and the right of every employee in South Dakota to be reimbursed for their employment expenses, and to be treated in a manner consistent with the requirements of South Dakota law,” Tobin said in a statement.