FedEx Adjusted Net Income of $753 Million Reflects Improved Unit Results
FedEx Corp. reported net income, excluding one-time costs, of $753 million, or $2.66 per share, for its fiscal fourth quarter ending May 31 that included improved results at the Express, Ground and Freight units.
Profit excluding taxes and interest rose 12% at Express to $598 million, despite a 4% drop in revenue to $6.70 billion. The Ground unit slightly boosted profit to $603 million from $601 million, reflecting a 19% rise in revenue to $3.57 billion. Freight profitability rose 5% to $137 million as revenue increased 1% to $1.57 billion.
Results in the quarter were affected by one-time costs for aircraft retirements, pension accounting and legal settlement costs. Including those factors, the net loss was $895 million. Revenue rose to $12.1 billion.
In the year-earlier period, net income also was $753 million, adjusted for one-time costs. Per-share earnings of $2.54 were lower because of share repurchases over the previous 12 months.
The one-time costs in the latest quarter reduced earnings by $5.97 per share.
“Fiscal 2015 was a transformative year for FedEx with outstanding financial results driving expanded long-term value for shareowners,” CEO Frederick Smith said in a statement. “Significant acquisitions announced in the year promise to strengthen our portfolio of services and change what’s possible for customers. I am very proud of the FedEx team for its accomplishments and look forward to a successful fiscal 2016.”
Those acquisitions included logistics operator Genco and the planned purchase of Dutch package and freight operator TNT N.V.
FedEx, which ranks No. 2 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers, said the results were helped by improved pricing, stronger U.S. volumes and cost-saving initiatives. Higher employee costs and unfavorable currency exchange hurt the results.
