Sept 20 (Reuters) - FedEx raised the lower end of its full-year adjusted profit forecast on Wednesday as it benefited from problems experienced by rivals UPS and Yellow.
FedEx's shares rose 4% to $261.38 after the bell.
The company, which has been slashing costs to protect profits, has also benefited as some worried UPS customers shifted packages to the FedEx network ahead of the Aug. 1 expiration of that rivals' contract covering about 340,000 United Brotherhood of Teamsters-represented workers.
As one of the largest providers of less-than-truckload shipping, FedEx also was in prime position to benefit from last month's demise of Yellow, one of that sector's dominant players.
The global shipping downturn which has hurt margins for the sector has pushed several companies to adopt a balancing act of matching costs and capacity to lower demand.
The fall in demand comes against the backdrop of a decline in e-commerce volumes as the pandemic-driven online shopping bubble burst.
Last fiscal year, FedEx slashed 29,000 jobs, retired 18 planes, shuttered offices and pared back profit-sapping Sunday deliveries in a bid to cut $4 billion in permanent costs by the end of its 2025 financial year.
FedEx now expects adjusted full-year earnings per share between $17.00 and $18.50, compared with its prior forecast of $16.50 to $18.50 per share. (Reporting by Priyamvada C in Bengaluru)