FedEx reports Q1 results and shipping rate increases
FedEx has reported a revenue of $14.7bn for the first quarter (Q1) of fiscal 2017, up from $12.3bn in Q1 2016. The operating income for Q1 2017 was $1.26bn, or $1.36bn when adjusted to exclude TNT Express integration and Outlook restructuring program costs and intangible asset amortization expense. This compared to $1.14bn in Q1 2016.
“Operating results rose compared to last year due to higher base yields at FedEx Express and FedEx Ground, volume growth at FedEx Ground and ongoing cost efficiencies at FedEx Express,” said FedEx.
“These factors were partially offset by integration and restructuring program costs and intangible asset amortization at TNT Express, and higher network expansion costs at FedEx Ground.”
Frederick W. Smith, FedEx’s chairman, president and chief executive officer, commented: “The integration of TNT Express is proceeding smoothly, and the level of team members’ engagement is outstanding.
“Managing our operating companies as a portfolio of customer solutions helped FedEx achieve strong financial and operating results in the quarter, especially given the global economy’s continued low growth.”
The company also re-affirmed its planned shipping rate increases yesterday.
Effective from 2 January, FedEx Express will increase shipping rates by an average of 3.9%, while FedEx Ground, FedEx Home Delivery and FedEx Freight will increase shipping rates by an average of 4.9%. The FedEx Express and FedEx Ground U.S. domestic dimensional weight divisor will also change from 166 to 139.
From 6 February, FedEx Express and FedEx Ground fuel surcharges will be adjusted on a weekly basis compared to the current monthly adjustment.
