Executive Business Briefing

Here is a look at more of Wednesday's top business stories:

Earnings rise 11 percent at FedEx

MEMPHIS, Tenn., March 20 (UPI) -- FedEx Corp., citing strong revenue growth at its ground operations, said Wednesday its third quarter net income for the period ended Feb. 28 rose 11 percent.

The Memphis, Tenn., -based company said its net income rose to $120 million, or 39 cents a diluted share, from $108 million, or 37 cents a share during the same period a year earlier.

Analysts on Wall Street were expecting the company to post a net income of 37 cents a share, according to a survey by Thomson Financial/First Call.

"Strong revenue and profit growth at FedEx Ground, solid cost control efforts at FedEx Express and improved productivity across our core operating companies benefited the company this quarter," said Alan B. Graf, Jr., FedEx executive vice president and chief financial officer.

FedEx back on Feb. 11 said its third quarter earnings would meet or exceed the high end of its forecast of 25 cents to 35 cents a share.

Operating income rose 24 percent to $237 million from $191 million a year ago.

Revenue rose 4 percent to $5.02 billion from $4.84 billion a year ago.

"Our sales and marketing forces are effectively cross-selling the diverse FedEx portfolio of services, particularly to small- and medium-sized businesses," he said. "In addition, the expanded scope of the FedEx Home Delivery network, coupled with the improved service of the FedEx Ground network, is enabling the company to capture additional ground business."

The company also said that it expects fourth quarter volume at FedEx Ground to grow about 16 percent from the same period a year earlier.

Looking ahead, FedEx also said it estimates its fourth quarter year-over-year U.S. domestic average daily package volume will be down approximately 2 percent and FedEx International Priority shipments will be down about 1 percent.

FedEx Express derives a significant portion of its U.S. domestic express business from the manufacturing and wholesale sectors. These sectors continue to be weaker than the U.S. economy as a whole on a year-over-year basis and the company expects that once they rebound, Express' volumes will improve.

The company also said it believes that earnings for the fourth quarter will rise to between 70 cents to 80 cents per diluted share from the 64 cents a share a year ago excluding charges.

Lehman Brothers posts lower results

NEW YORK, March 20 (UPI) -- Lehman Brothers Holdings Inc. said its first quarter net income for the period ended Feb. 28 fell 23 percent to $298 million, or 99 cents a share, from $387 million, or $1.39 a share during the same period a year earlier.

It was the third straight quarter the firm posted a decline in profits and came despite strong bond operations.

But, the results more than doubled from the fourth quarter, when Lehman was dislocated from its downtown New York headquarters after the Sept. 11 attacks, disrupting its operations.

Analysts on Wall Street had expected the firm to post a net income of 94 cents a share, according to Thomson Financial/First Call.

"In the first quarter, we saw a significant rebound in profitability from the fourth quarter of fiscal 2001, which had been impacted by the loss of the firm's downtown New York headquarters facilities on Sept. 11," said Richard Fuld, Lehman's chief executive, in a statement.

Wall Street has yet to recover from a dearth of investment banking deals such as initial public offerings and mergers, as stock markets continue to flounder.

Lehman's total net revenue fell to $1.6 billion from $1.9 billion, as capital markets revenue, which includes stock and bond sales and trading, fell 22 percent.

Earnings jump 40 percent at Lennar Corp.

MIAMI, March 20 (UPI) -- Homebuilder Lennar Corp., citing low interest rates and high consumer confidence, said its fiscal first quarter net income for the period ended Feb. 28 jumped 40 percent.

The homebuilder said its net income climbed to $71.9 million, or $1.03 a share, from $51.3 million, or 75 cents a share during the same period a year earlier.

Analysts on Wall Street had been expecting the company to post a net income of 99 a share, according to Thomson Financial/First Call.

Revenues rose to 13 percent to $1.2 billion from $1.1 billion a year ago.

"Our successful first quarter financial performance is a result of steady consumer demand which continues to drive a consistent earnings picture," said Stuart Miller, president and chief executive officer.

"Historically low interest rates combined with a high level of consumer confidence and relatively strong employment trends continue to promote a healthy homebuilding environment," Miller said.

"The strength of our financial results combined with the recent increase in sales to pre-Sept. 11 levels gives us confidence that we will achieve our goal for record-breaking earnings again in 2002," he added.

The Miami-based company said revenues from sales of homes increased 11 percent during the first quarter to $1.1 billion from $1.0 billion in 2001.

Revenues were higher primarily as a result of a 13 percent increase in the number of home deliveries, partially offset by a 1 percent decline in the average sales price.

New home deliveries increased to 4,791 homes in the first quarter from 4,257 homes last year. New home deliveries were higher primarily due to increases in home deliveries in Florida and Texas, compared to the same period in 2001.

The average sales price on homes delivered declined to $232,000 from $234,000 last year primarily due to a lower average sales price in Texas, the company added.

Lennar has homebuilding operations in 16 states.

Cingular Wireless expands its network

ORLANDO, Fla., March 20 (UPI) -- Cingular Wireless, the nation's second largest wireless operator, said it would invest more than $700 million this year in its network for the Gulf States region of Florida, Alabama, Mississippi and Louisiana to enhance call quality and network coverage.

The company, a joint venture of SBC Communications Inc. and BellSouth Corp., said it plans to deploy more than 100,000 more digital voice paths on existing cell towers in the Gulf states region, bringing the total in that region to over 350,000.

Cingular also said it will deploy 400 more cell sites in the four-state region over the next year. Of these, nearly 70 percent will be located with other wireless carriers on existing tower sites.

"Cingular has built its reputation in the Gulf States region by providing outstanding network quality and superior customer service, and we will continue to improve our networks to ensure our customers' continued satisfaction," said Larry Carter, president, Cingular Wireless, Gulf States region.

The company, which ranks behind industry leader Verizon Wireless, serves more than 21.6 million customers nationwide.