Federal Express (FedEx) has posted a seven per cent increase in its fourth-quarter profit. The company earned US$610 million, up from US$568 million a year ago. Revenues rose eight per cent to US$9.15 billion from US$8.49 billion.

For all of fiscal 2007, FedEx earned US$2.02 billion, up from US$1.81 billion the previous year. Revenues rose to US$35.2 billion from US$32.3 billion a year earlier.

"Our net income was more than US$2 billion, largely because the payoff of our global investment helped offset the headwind of a slowing US economy," said founder and chief executive officer Fred Smith. "We remain optimistic about prospects for global economic growth and will continue to invest in projects critical to strong long-term financial performance."

Despite the profit rise, FedEx said a sluggish US economy dampened business. “We expect the economy to show modest, year-to-year improvements beginning in late summer or early fall," Smith added.