MEMPHIS, TN— FedEx announced a 24-percent increase in its fiscal year first quarter profit and a 4.9 percent increase in shipping rates for FedEx Express and FedEx Freight, effective January 5, 2015.

The company’s net income totaled $606 million or $2.10 per share, up 37 percent from last year’s $1.53 per share. Revenue was $11.7 billion, an increase of six percent from the same time a year earlier.

“FedEx Corp. is off to an outstanding start in fiscal 2015, thanks to very strong performance at FedEx Ground, solid volume and revenue increases at FedEx Freight and healthy growth in U.S. domestic volume at FedEx Express,” said Frederick Smith, FedEx chairman, president and CEO.

FedEx Freight

For the quarter, the FedEx Freight segment reported revenue of $1.61 billion, up 13 percent from last year’s $1.42 billion, and operating income of $168 million, up 70 percent from $99 million a year ago.

Less-than-truckload average daily shipments increased 11 percent, including a 13-percent increase in demand for priority service. LTL revenue per shipment increased three percent due to higher weight per shipment, increased fuel surcharge revenue and higher rates, according to the company. Operating results improved due to increased LTL revenue per shipment, higher average daily LTL shipments and solid cost management.

FedEx Freight also announced it will increase shipping rates by an average of 4.9 percent. This rate change applies to eligible FedEx Freight shipments within the U.S.; including Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands; between U.S. and Canada, within Canada, between U.S. and Mexico, and within Mexico.

FedEx Express

Meanwhile, FedEx Express reported revenue of $6.86 billion, up four percent from last year’s $6.61 billion, and operating income of $369 million, up 35 percent from $273 million a year ago.

The company said revenue increased due to higher U.S. domestic package volume and international export package yields partially offset by lower freight revenue. U.S. domestic package volume grew five percent.

FedEx Express will increase shipping rates by an average of 4.9 percent for U.S. domestic, U.S. export and U.S. import services.

FedEx Ground

The FedEx Ground segment reported revenue of $2.96 billion, up eight percent from last year’s $2.73 billion, and operating income of $545 million, up 13 percent from $483 million a year ago.

FedEx Ground average daily volume grew six percent in the first quarter, primarily driven by growth in e-commerce, according to the company. Revenue per package increased three percent due to increased rates and higher residential and fuel surcharges.

FedEx Ground and FedEx Home Delivery will also increase shipping rates by an average of 4.9 percent. FedEx Ground will also begin applying dimensional weight pricing to all shipments, as announced in May.

With files from Evan Lockridge.