FedEx reports $60bn revenue for FY2017
FedEx has reported revenues of $60.3bn for the fiscal year (FY) 2017 – up from $50.4bn in the previous year. Reported operating income was $5.04bn, compared to $3.08bn in the previous year.
For the fourth quarter (Q4), FedEx had a reported revenue of $15.7bn, up from $13bn.
The FedEx Express segment saw its reported Q4 revenues grow from $6.72bn to $7.18bn and operating income was also up, from $757m to $863m. The reported income figure included $46m of expenses related to the integration of TNT Express – without this, the adjusted operating income would be $909m.
Explaining the results in the Express segment, FedEx said: “Operating results increased primarily due to higher base rates, increased package volume, a positive net benefit from fuel and the continued benefit of cost management initiatives.”
FedEx said that it expected to see further growth in 2018, and it was investing accordingly.
FedEx said: “Capital spending for fiscal 2018 is expected to be approximately $5.9 billion, which includes an increase in planned aircraft deliveries to support the FedEx Express fleet modernization program and continued investments in FedEx Ground automation and capacity expansion, including certain projects deferred from fiscal 2017.”
Alan B. Graf, FedEx’s chief financial officer, added: “Investments to modernize our aircraft fleet and expand our FedEx Ground capacity are supporting our strong earnings growth.
“We are very optimistic about fiscal 2018 as evidenced by our earnings outlook.”
Click here to see a FedEx statement about the FY2017 and Q4 results.
