Earnings Watch: FedEx Quarterly Profit Totals $715 Million
Earnings for trucking and package delivery company FedEx Corp.(NYSE: FDX) moved up modestly to $715 million, or $2.65 per share, in its fiscal quarter ending Aug 31 that included the cost of integrating another carrier.
This compares to a profit of $692 million, or $2.42 per share, a year earlier, as revenue increased to $14.7 million billion from $12.3 billion.
During the quarter, the Tennessee-based company incurred TNT Express integration and restructuring program costs, shaving $68 million off its profits, while also incurring $28 million of intangible asset amortization expense for TNT Express.
In May, FedEx completed its purchase of Europe’s TNT Express for nearly $5 billion expanding its worldwide trucking and logistics offerings.
“The integration of TNT Express is proceeding smoothly,” said Frederick W. Smith, FedEx chairman, president and chief executive officer. “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.”
In the most recent quarter, FedEx reported operating income increased to $1.26 billion from $1.14 billion in the 2015 quarter. 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, according to the company.
The company’s less-than-truckload operation, FedEx Freight, saw revenue increase 4% to $1.66 billion while operating income moved 2% higher to $135 million.
Revenue increased as LTL average daily shipment growth of 8% more than offset the impact of lower fuel surcharges and weight per shipment FedEx said. Operating results benefited from higher shipment volumes and a favorable rentals comparison, as last year’s results included a charge related to a facility closure. These benefits were offset by lower revenue per LTL shipment.
FedEx also recorded a small hike in revenue for its FedEx …Read the rest of this story
