FedEx says the global economic recovery is broadening, as Asia continues to show strong growth and the U.S. economy gains steam, The Associated Press reports.
Fred Smith, CEO of the world’s second-largest package delivery company, predicted a “relatively strong” first half as major economies emerge from the recession with steady economic growth in the last six months of the year.
FedEx expects U.S. gross domestic product to grow about 3 percent this year, led by the manufacturing sector, in line with economists’ expectations.
Still, Smith warned in a conference call Thursday that the housing market “could remain a problem.”
The largely positive comments came after FedEx said that fiscal third-quarter profit more than doubled from a year earlier. It was the first year-over-year profit increase for the Memphis, Tenn., shipping company in five quarters.
FedEx also raised its earnings forecast for the fiscal year ending in May, seeing “a continued modest recovery in the global economy.” FedEx believes the strongest growth will continue in Asia, and the U.S. and Europe are improving.
FedEx, considered an economic bellwether because of the variety of products it ships for businesses and consumers, said Thursday it earned $239 million compared with $97 million a year earlier. Revenue rose 7 percent to $8.70 billion. The results exceeded Wall Street expectations.
