FedEx saw its net profit jump 27 percent to $568 million in its fiscal fourth quarter ending May 31, finishing the biggest year in the company's history with a $1.8 billion profit on $32.3 billion in revenue.

Strong growth in trucking business at the parcel FedEx Ground and LTL FedEx Freight operations led the growth in the fourth quarter, but the foundation FedEx Express business also reported a 30 percent surge in operating profit to $560 million in the last quarter on a 10 percent gain in revenue.

With its purchase of longhaul LTL trucker Watkins Motor Lines due to close, FedEx says it expects strong growth to continue and FedEx Chairman, President and CEO Frederick Smith suggested more expansion of the FedEx network is coming.

"We remain optimistic about the global economic environment for fiscal 2007 and our ability to effectively manage our business," he said. "We will remain firmly focused on … seeking new opportunities to serve our customers."

FedEx's revenue in its last fiscal 2006 quarter was up 10 percent over last year, to $8.5 billion, and its operating profit grew 25 percent to $927 million.

The express business reached $5.6 billion in revenue, up 10 percent, but the smaller surface operations grew faster.

FedEx Ground surged 15 percent to $1.4 billion and the 15 percent gain in revenue at FedEx Freight, to $973 million gave that trucking operation a $142 million operating profit, good for a 14.6 percent operating margin in the quarter. The 13.3 percent operating margin for the full year was a sharp improvement over 11 percent in the previous year and came on a 9 percent gain in LTL yield.

The only cloud came over the FedEx Kinko's segment, where the operating profit fell by more than half. FedEx says it is launching a plan to expand the FedEx Kinko's storefront locations over several years.