ABERDEEN, Scotland Revenue at Greyhound Lines, North Americas largest intercity carrier, rose during fiscal 2012, as the company reaped the benefits of an improving U.S. economy, its parent company reports.

Last month, FirstGroup plc issued a "trading update" for the year ended March 31, saying it would report actual numbers for the fiscal year during the third week of May.

"Greyhound continues to perform well from a transformed operating model with like-for-like revenue expected to increase by 4.2 percent" during fiscal 2012, said FirstGroup.

In the U.S., Greyhound operating margins improved during the year, and in Canada, where Greyhound has eliminated uneconomic routes, business is on track to meet profit expectations.

FirstGroup also said it was "pleased with the success of Greyhound Express, which continues to perform strongly."

More than 1.8 million customers have used Greyhound Express, according to FirstGroup, and plans are on track to expand the service to more than 600 city pairs, making it the largest such network in North America.

Interestingly, Greyhound continues to be the revenue growth leader among FirstGroups U.S. business units, which also include FirstStudent and First Transit.

FirstStudent, the nations largest private school bus operator, is recovering from budget cutbacks by U.S. school districts.

Revenue at the school bus operation has developed "in line" with FirstGroup expectations, with top-line income expected to come in 1.4 percent lower than fiscal 2011, but operating margins for the second half of the fiscal year are expected to be slightly ahead of the same period last year.

At First Transit, the large transit management company, revenue for fiscal 2012 is up 1.5 percent, and the operation continues to renew contracts and win new business, according to FirstGroup.

First Transit expects to see more communities outsource public transit services.

Meanwhile, FirstGroups operations in the United Kingdom met overall earnings and cash targets during fiscal 2012. But the outlook for fiscal 2013 in the U.K. appears decidedly more difficult, the company indicated.

While passenger revenue for the U.K. bus division is expected to post a 1.5 percent increase for fiscal 2012, the outlook for the bus unit is sketchy.

"The economic environment is presenting challenging trading conditions, and performance during the year reflects the growing North-South divide, with considerably lower growth rates emerging in Scotland and the north of England, where a significant portion of our urban operations are concentrated and approximately 60 percent of our U.K. bus passenger revenue is generated," said FirstGroup.

To cope on a long-term basis, FirstGroup plans to sell and dispose of selective assets.

FirstGroups announcement that it expects tough sledding in fiscal 2013 was not welcomed by U.K. stock traders, who sent FirstGroup shares in their biggest tumble in more than three years in the days following the company announcement.