March 20, 2009, 12:00 AM

FedEx Home Delivery drives 2% rise in Q3 ground shipments, FedEx says

FedEx Ground’s average daily small-parcel delivery volume rose 2% year over year for the third quarter ended Feb. 28, driven mostly by increases in the company’s FedEx Home Delivery service, the company says.

FedEx Ground’s average daily small-parcel delivery volume rose 2% year over year for the third quarter ended Feb. 28, driven mostly by increases in the company’s FedEx Home Delivery service, the company says.

FedEx Ground, a unit of FedEx Corp. that handles packages of up to 150 pounds, also said average daily package volume rose 44% year over year for its SmartPost service, which ships high-volume packages to the U.S. Postal Service for local delivery to residential addresses. FedEx attributed the rise in SmartPost volume partly to market share gains resulting from the exit last year of DHL from the U.S. domestic delivery market.

The volume increases helped to push FedEx Ground’s Q3 revenue up 4% to $1.79 billion from $1.72 billion a year earlier, as its revenue for the first nine months of its fiscal year rose 6% to $5.34 billion from $5.04 billion.

Overall business at FedEx was down in the third quarter, however, causing the company to plan a reduction of its workforce and other cost savings. It did not provide further details of those plans.

U.S. package volume at FedEx Express, which many direct-to-consumer retailers use to deliver packages within one to three days, declined 3% year over year in Q3. Revenue at FedEx Express declined 18% year over year to $5.05 billion, as revenue for the nine months declined 3% to $17.58 billion.

FedEx Corp. reported that total revenue from overall operations, including FedEx Freight, fell 14% in Q3 to $8.14 billion from $9.44 billion, as total revenue for the nine months fell 2% to $27.65 billion from $28.09 billion.

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