FedEx posts quarterly USD 70 million net loss despite 7.3% revenue rise
FedEx Corp posted a quarterly net loss to USD 70 million year on year, narrowing the previous year's net loss of USD 895 million.
This year, quarterly revenues came in a USD 13 billion, up 7.3%. But full year profit came in at USD 1.82 billion up 73.3% year on year, drawn on revenues of USD 50.4 billion, up 6.1%.
The company said it was unable to provide guidance that included the results of the TNT takeover or the change in pension accounting.
"I was a little disappointed to see their guidance does not incorporate TNT," said Logan Purk, an analyst at Edward Jones.
"The implication is their guidance would come down for the year if it included TNT."
The TNT acquisition, which closed May 25, gives FedEx an extensive ground delivery network in Europe.
That makes it a stronger competitor to market leaders UPS and DHL. FedEx expects capital spending related to the integration of TNT at USD 100 million this fiscal year, with total integration costs of USD 200 million in the same period, chief financial officer Alan Graf said on a conference call with investors and analysts. While the purchase will boost earnings in fiscal 2018, Graf declined to say whether it would dilute profits this year.
FedEx also reported adjusted fiscal fourth quarter earnings of USD 3.30, topping the average estimate of USD 3.28. Including TNT costs and pension accounting changes, FedEx had a net loss of USD 70 million, or 26% a share, for the quarter.
Tag Keyword: FedEx Corp , Revenues , TNT