FedEx Corp. will expand its FedEx Home Delivery network to 80% of the U.S. population, beginning next Tuesday when it will open 63 additional locations in regions throughout the U.S., including 56 co-located terminals with existing FedEx Ground facilities, thus minimizing capital expenditures, the company reported today. Next Febnruary, FedEx will open another 30 Home Delivery facilities that will reach 90% of the population. It plans full coverage of the U.S. next September, about a year ahead of schedule.
FedEx Home Delivery average daily package volume increased 32% from the fourth quarter, the company reported. “We are committed to rolling out FedEx Home Delivery at an aggressive rate and are pleased to extend the service beginning September 25 to more residential consumers across the country," said Daniel J. Sullivan, president and chief executive officer.
FedEx’s total revenue in the first quarter reached $5.04 billion, up 5% from $4.78 billion the previous year, while operating income of $235 million was down 24% from $311 million a year ago. Income before the effect of an accounting change totaled $124 million, down 27% from last year's net income of $169 million.
For the first quarter, FedEx Ground’s revenues grew 15% to $623 million from last year's $543 million while operating income grew 40% to $60 million from $43 million a year ago. On a per-day basis, revenue grew 17% since there was one less operating day in this year’s first quarter from last year’s.
"The strong revenue growth at FedEx Ground during the quarter was largely due to the company's success in adding small and medium-sized business customers," Sullivan said. "Our core business-to-business shipment volume grew much faster year-over-year than the overall economy.”
On Sept. 4, FedEx launched its FedEx Online Express Savings Program, which provides a discount of up to 10% for qualified customers to place orders via fedex.com. In addition, FedEx report reported that it has paced up to 4,100 FedEx drop boxes outside U.S. Post Offices since national rollout began June 19.
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