FedEx posts Q4 loss
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.”
