March 17 (Bloomberg) -- FedEx Corp., the No. 2 U.S. package carrier, said third-quarter profit climbed 53 percent as shipments from Asia and Europe increased.

Net income rose to $317 million, or $1.03 a share, in the quarter ended Feb. 28, from $207 million, or 68 cents, a year earlier, the company said in a statement today. Revenue increased 21 percent to $7.34 billion.

FedEx, based in Memphis, Tennessee, is benefiting from a jump in exports from Asian and European countries and a rise in domestic shipments, which are helping to bolster its international shipping and ground delivery businesses. U.S. imports from Asia rose 17 percent in January, led by Chinese exports, the U.S. Commerce Department said in its latest report.

``We have solid momentum in the business and customer demand is strong,'' Chief Executive Frederick Smith said in a statement. ``Economic conditions remain favorable, and we are optimistic about future growth prospects.''

The company said fourth-quarter earnings per share will probably be $1.40 to $1.50 share. FedEx is forecast to earn $1.49 during the quarter ending May 31, according to a poll of 13 analysts by Thomson Financial. Net income in the fourth quarter a year ago was $412 million, or $1.36 a share.

Third-quarter operating income at FedEx's express delivery unit rose 56 percent to $340 million. Its ground delivery unit had profit of $149 million, up 33 percent from a year earlier.

Market Share

FedEx's share of U.S. ground shipments rose to about 16 percent last year from 11 percent in 2000, according to Morgan Stanley. During the same period, the share of Atlanta-based United Parcel Service Inc. slipped from 68 percent to about 65 percent. The U.S. Postal Service's 2004 share was about 17 percent, with 2.2 percent for Deutsche Post AG's DHL unit.

FedEx last month won tentative U.S. Department of Transportation approval to add three weekly flights to China, bringing its total to 26 a week by March 2006. China will grow faster than any other U.S. freight market in the next 20 years, expanding 7 percent annually, the Transportation Department has said. UPS and Deutsche Post AG's DHL Express unit also are expanding China service.

The company was expected to earn 98 cents a share in the third quarter, the average forecast of 14 analysts polled by Thomson Financial. FedEx in December forecast a profit of 90 cents to $1 a share and again in January.

The company said Jan. 11 it had a ``strong'' holiday season and was not affected by winter storms and a slowdown in U.S. shipments the week after Christmas that occurred at UPS. UPS cited those factors when it reported a 1.2 percent increase in fourth-quarter profit, its smallest gain since mid-2002.

FedEx shares, which are up 34 percent in the past 12 months, fell $1.13, or 1.2 percent, to $95.80 yesterday in New York Stock Exchange composite trading.

To contact the reporter on this story: Mary Schlangenstein in Dallas maryc.s@bloomberg.net