FedEx Sees ‘Transition Year’ as Trade Damps E-Commerce Gains
- Company’s ground operation shows signs of profit potential
- Air-delivery unit lags as U.S.-China trade tensions worsen
Photographer: John Taggart/Bloomberg
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FedEx Corp. predicted a “transition year’’ for fiscal 2020, with an improving outlook for e-commerce profits tempered by concerns that international trade tensions will worsen.
Revenue per package in the ground-delivery operation rose 2.2% in the quarter ending May 31 as volume growth accelerated to 8.8%, FedEx said in a statement late Tuesday. That signaled progress in the courier’s push to extract higher profits from the surge in home deliveries driven by online shopping.