FedEx Corp.’s quarterly profit nearly tripled and revenue jumped 23%, despite winter storms in the U.S. that disrupted its delivery operations and sapped its profit by $350 million.
The package giant, like competitor United Parcel Service Inc., has been handling a surge in e-commerce orders during the Covid-19 pandemic as more people shop from home. Executives said Thursday they expected that trend to persist even as vaccines roll out.
“We expect demand for our unmatched e-commerce and international express solutions to remain very high for the foreseeable future,” Chief Executive Fred Smith said in a statement.
In the quarter ended Feb. 28, FedEx’s package volumes rose 25% in its Ground unit, which handles most of its e-commerce deliveries and the bulk of its holiday shopping orders. The company logged a 29% surge in volumes in the Ground unit during the quarter ended Nov. 30.
For the Express business, which handles overnight and international shipments, daily package volume rose 12.2% in the quarter.
