OREANDA-NEWS. FedEx Corp. reported earnings of USD 2.42 per diluted share for the first quarter ended August 31, compared to adjusted earnings of USD 2.12 per diluted share a year ago. Without adjustment, FedEx earned USD 2.26 per diluted share last year.

FedEx now projects adjusted earnings for fiscal 2016 to be USD 10.40 to USD 10.90 per diluted share before year-end mark-to-market pension accounting adjustments, aided by benefits from the profit improvement program. The outlook assumes moderate economic growth and does not include any operating results or costs related to TNT Express. The capital spending forecast for the fiscal year remains USD 4.6 billion.

"Our new fiscal 2016 outlook is modestly lower than our initial forecast due primarily to weaker LTL industry demand and higher than expected self-insurance reserves and operating costs at FedEx Ground," said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. "We still expect strong earnings growth this year, as we remain focused on executing our profit improvement program, leveraging e-commerce growth and enhancing our revenue quality."

As announced on September 15, 2015, FedEx Express, FedEx Ground and FedEx Freight will increase shipping rates by an average of 4.9% effective January 4, 2016. FedEx is also increasing surcharges for FedEx Ground shipments that exceed the published maximum weight or dimensional limits, and updating certain fuel surcharge tables at FedEx Express and FedEx Ground effective November 2, 2015.