"FedEx said combined average daily package volume at FedEx Express and FedEx Ground grew 5% in the quarter on growth in ground and international express shipments.
FedEx lifted its earnings outlook for 2007 by 5 cents a share, but said its second-quarter net income would be lower by 20 cents a share because of signing bonuses and other up-front compensation related to its proposed new four-year contract with the Air Line Pilots Association.
The union leadership has recommended its 4,100 pilots approve the new four-year contract. Voting began Sept. 18 and closes Oct. 18.
Including costs for the pilots' contract FedEx forecasts second-quarter earnings of $1.45 to $1.60 a share, and 2006 earnings of $6.30 to $6.65 a share."