OREANDA-NEWS. For the third quarter, the FedEx Ground segment reported:
* Revenue of USD 3.39 billion, up 12% from last year's USD 3.03 billion
* Operating income of USD 558 million, up 14% from USD 490 million a year ago
* Operating margin of 16.4%, up from 16.2% the previous year

FedEx Ground average daily volume grew 7% in the third quarter due to growth in both business to business and home delivery services. Revenue per package increased 3% due to base rate increases and higher dimensional weight charges. FedEx SmartPost average daily volume decreased 7% due to the reduction in volume from a major customer. SmartPost revenue per package increased 8% due to rate increases and improved customer mix, partially offset by higher postage costs.

Operating results increased due to higher revenue per package, volume growth, a net benefit from fuel and a lower year-over-year weather impact, partially offset by network expansion costs.

FedEx Corp. completed the acquisition of third-party logistics provider GENCO Distribution System, Inc. on January 30, 2015. The financial results of GENCO are included within the FedEx Ground segment from the date of acquisition. GENCO had an immaterial impact on the quarter's results.