FedEx today raised its earnings forecast for the fiscal first quarter and full year, citing strong demand for its international express, ground and less-than-truckload services.
Chief financial officer Mr Alan Graf said risks exist, such as prolonged high oil prices that could hurt the world economy.
FedEx, whose shares rose in pre-market trading, believes the economy will continue on a path of sustainable expansion, Mr Graf added.
Memphis-based FedEx said it now expects earnings of $1 to $1.10 per share for the first quarter and $4.40 to $4.60 for the year. It previously forecast 90 cents to $1 per share for the quarter and $4.20 to $4.40 for the year.
Wall Street analysts, on average, expected 96 cents a share for the quarter and $4.48 a share for the year.
FedEx also said it will boost capital spending to between $2 and $2.1 billion in fiscal 2005 to expand the capacity of its international express, ground and freight networks. In June it forecast fiscal 2005 capital spending of $1.6 billion.
FedEx shares rose in pre-market trade to $81.10 from a close of $79.30 on Friday on the New York Stock Exchange.