FedEx quarterly profit rises on higher rates

March 20 (Reuters) - Package delivery company FedEx Corp on Tuesday reported a higher quarterly net profit due to higher rates for deliveries but was hurt by peak holiday season costs and bad weather.

The Memphis-based company, considered an indicator of U.S. economic strength like its main rival United Parcel Service Inc , posted net income for the fiscal third quarter ended Feb. 28 of $2.07 billion, or $7.59 per diluted share, up from $562 million, or $2.07 per share, a year earlier.

Adjusted for one-time items, the company reported earnings per share of $3.72. Wall Street analysts had expected earnings per share of $3.11. (Reporting by Eric M. Johnson in Seattle Editing by Leslie Adler)