FedEx reports Q3 earnings
FedEx has reported that its revenues for the third quarter (Q3) were $16.5bn, up $1.5bn on last year.
Adjusted (non-GAAP) income was $1.02bn, compared to $625m in Q3 2017. The adjusted operating income was flat at $1.11bn.
In a statement issued yesterday (20 March), Frederick W. Smith, FedEx Corp. chairman and chief executive officer. said: “Execution of our long-term growth strategies, customer demand for the unique value of our broad portfolio of solutions and healthy growth in the global economy are driving our performance. We expect strong operating performance in each of our transportation segments in the fourth quarter.”
The FedEx statement also said that: ” Results were negatively affected by significantly higher variable compensation accruals, increased peak-related costs at FedEx Express and the impact of adverse weather.”
The FedEx Express segment reported an adjusted revenue of $9.37bn, up from $8.57bn. According to the FedEx statement: “Revenue increased due to improved base rates, currency exchange rates and higher fuel surcharges, despite a lingering impact from the June cyberattack affecting TNT Express. Total package volume declined 1%, as lower international domestic and U.S. domestic volumes offset international export package volume growth of 1%. Average daily freight pounds increased 3% on higher volume in both international and U.S. freight services.”
FedEx Freight’s revenue was up 14% at $1.69bn.
FedEx Ground reported a revenue of $5.22bn, compared to $4.69bn in Q3 2017. “Strong revenue growth was driven by average daily package volume growth of 6% and higher base rates. During peak season, record volume was delivered with exceptional service through FedEx Ground’s highly automated and flexible network,” said FedEx.
“Operating results improved due to the benefits from strong revenue growth and ongoing cost management, partially offset by increased purchased transportation, seasonal staffing and network expansion costs as well as higher variable compensation accruals.”
