FedEX reports $16.3bn Q2 revenues
FedEx has reported a revenue of $16.3bn for the second quarter (Q2) of fiscal 2018, with an adjusted operating income of $1.38bn.
In a statement issued yesterday (19 December), FedEx said that its pperating income increased due to “higher base rates and increased volume at each transportation segment” -but added that this was “partially offset by reduced revenue resulting from the TNT Express cyberattack and higher TNT Express integration expenses”.
FedEx said that it was maintaining its capital spending forecast for fiscal 2018 at $5.9bn.
The FedEx Express segment notched up a revenue of $9.35bn, compared to $8.64bn last year.
The cyber attack on TNT clearly had a financial impact. According to the FedEx statement: “The company is accelerating the integration process and increasing investments to move TNT Express information technology and operational infrastructure to FedEx infrastructure due to the recent cyberattack at TNT Express. As a result, the total TNT Express integration program expense through fiscal 2020 is now estimated to be approximately $1.4 billion, up from the previous $800 million estimate, of which $450 million is expected to be incurred in fiscal 2018.”