FedEx ratchets up earnings expectations

FedEx ratchets up earnings expectations    FedEx Corp. said today it expects to report higher earnings for its first quarter and fiscal year 2005 results.
   The Memphis based integrator said it anticipates earnings of $1.00 to $1.10 per diluted share for the first quarter ending Aug. 31, up from earlier estimates of 90 cents top $1.00 per diluted share. For the fiscal year, FedEx anticipates earnings of $4.40 to $4.60 per share, up from $4.20 to $4.40.
   'We are seeing strong demand across our international express, ground and less-than-truckload services,' said Alan B. Graf Jr., executive vice president and chief financial officer. 'We have strong momentum in our businesses and believe the economy continues on a sustainable expansion path.'
   Graf acknowledged 'potential risks on the horizon, such as prolonged high oil costs that could impact the worldwide economy,' but said FedEx should still continue to see strong demand.
   FedEx said it will increase capital investment to $2.0 billion to $2.1 billion in fiscal 2005 to expand capacity of its international express, ground and freight networks.
   The company will report its quarterly earnings Sept. 22.