FedEx Corp’s less than truckload (LTL) units will implement a 5.59% general rate increase starting April 2. This increase for Fedex Freight and FedEx National LTL will not affect other companies within FedEx Corp; this includes FedEx Express and FedEx Ground. FedEx Freight is the regional and inter-regional provider of LTL services. They bought out Watkins Express a few months ago and renamed it FedEx National LTL.The rate increase will be applicable to interstate and intrastate traffic, and selected shipments between the United States and Mexico and Canada. They will make additional adjustments to include minimum and accessorial charges and also in select lanes and service areas.

This year, FedEx Corp.’s fiscal third quarter profits showed a 2% slide to $420 million compared to $428 million last year. Reasons stated are slowing economy, winter storms and lower fuel surcharges .The third quarter revenue has gone up by 7% to $8.59 billion.

The operating income for the LTL FedEx Freight unit went down 32% to   $50 million, while revenue rose 30% to $1.1 billion. LTL shipments were up 20% year-over-year as a result of acquiring Watkins Motor Lines last year. In the meantime, FedEx Ground operating income rose 5% to $196 million, while revenue was up 12% to $1.52 billion.The FedEx Express segment’s operating income dropped 12% to $391 million, while revenue rose 3% to $5.52 billion.

FedEx Kinko’s segment’s operating income was 43% lower; revenue was also down 3%.  Fourth quarter earnings for FedEx is likely to be $1.93 to $2.08 per share, while earnings for the full year would be $6.45 to $6.60 per share.

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