As reported by Post & Parcel:
FedEx has posted a $70m loss for the fourth quarter (Q4) – but revenues were up to $13bn, compared to $12.1bn for the same period last year.
The $70m loss was mainly due to mark-to-market pension adjustments and expenses related to buying TNT (and it was a significant improvement on the $895m net loss reported for Q4 Fiscal 2015). Taking these costs out of the equation, the company’s adjusted (non-GAAP) net income was $897m.
For Fiscal 2016 as a whole, FedEx notched up a revenue of $50.4bn (up from $47.5bn) and a net income of $1.82bn. This was the first time that the company had topped $50bn.
Commenting on the results, Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer, said: “Fiscal 2016 was a successful year for FedEx in many ways.
“Of particular note was our corporate operating margin improvement. Our May 25 acquisition of TNT Express capped a historic year of significant accomplishments that benefited shareowners, team members and customers, and strongly positions FedEx for long-term profitable growth.”
The FedEx Express Segment reported an adjusted operating income of $757m for Fiscal 2016, up from $598m. FedEx Ground’s operating income moved up to $656m from $603m.
Click here to access the full FedEx statement on its Q4 results.
Commenting on the results, Connor Campbell, a senior market analyst at www.spreadex.com, said: “By the time of delivery FedEx’s fourth quarter package was looking a bit battered despite containing a few pleasant surprises. A 7.4% rise in revenue to $13 billion alongside a 19% jump in net income to $897 million were both better than analysts’ estimates; however, the company slipped to a $70 million net loss for the quarter thanks to $946 million in pension adjustments, legal charges and costs relating to the takeover of TNT Express, news that tarnished the company’s headline growth.”
Ken Wood is the founder of LJM Consultants. LJM helps clients negotiate “Best in Class” UPS/FedEx agreements. LJM was recently named the “best parcel auditing company in America” and was also inducted into Inc. Magazine’s Top 500/5000 fastest growing companies in America for 2013. To learn how LJM Consultants can help your company get the parcel contract you deserve, call 631-844-9500 or email kenwood@myLJM.com.