Top News

|  DP World reports 10.7% gross volume growth in Q2 2017  |    |  Major Ports post combined net surplus of INR 2820 cr in FY 2017  |    |  Odisha sets a target to reach INR 1 lakh cr exports by 2025  |    |  Shapoorji Pallonji Group to spend INR 2,000 cr in Odisha Gopalpur Port  |    |  Air India SATS Airport Services launches mobile app for tracking cargo  |    |  IndiGo & Jet introduce additional flights to Doha, Mumbai from Kozhikode  |    |  Port of Rotterdam registers impressive container throughput rise in H1  |    |  New waterways to connect India with Bangladesh  |    |  Yang Ming to start New Korea-Taiwan-Hong Kong service  |    |  DFC to be commissioned in 2 years  |    |  Domestic air traffic up 20% in June  |    |  No new port in 100 km vicinity of major ports  |    |  IRCTC to install 1,100 water vending machines at railway stations  |    |  Port of Antwerp first half volume increases by 1.9% to 5,143,305 TEU  |    |  Asia-Europe rate falls 2.1% to USD 919 TEU, declines 3.1% to USWC  |    |  Operations at international cargo terminal likely to begin soon  |    |  Haicang Port sees 1H cargo rise 20.7% to 3.12 million TEU  |    |  Bahri gets delivery of 39th VLCC, strengthens its leading position  |    |  Shreyas Shipping & Logistics signs MoA to acquire one Multipurpose vessel  |    |  Businessman to sell 12% stake in CIAL  |   
You are here: Home » International News » Supply Chain» FedEx profit up 1.3% to USD 700m on revenue growth of 19.2%

FedEx profit up 1.3% to USD 700m on revenue growth of 19.2%

23 December 2016 | US


FedEx Corp has posted a second-quarter net profit of USD 700 million on revenues of USD 14.9 billion for the quarter, year-over-year increases of 1.3% and 19.2%, respectively.

Despite revenue growth across all business units in the second quarter, which ended November 30, the results lagged Wall Street expectations and the company's stock fell nearly 3% in after-market trading.

FedEx chairman, president and Chief Executive Officer (CEO) Fred Smith said in a statement that the company's integration of Dutch rival TNT Express, which it acquired last year, was "proceeding smoothly and according to plan."

FedEx in late May officially completed its EUR 4.4 billion euro (USD 4.9 billion) purchase of the Netherlands-based global express carrier.

"FedEx increased revenues and operating income despite continued low growth rates in the global economy. We are in the home stretch of our peak shipping season, and our service levels are high, thanks to the outstanding efforts of our hundreds of thousands of team members around the world," said Smith.

Looking ahead to the remainder of fiscal 2017, because the company is unable to forecast end-of-year mark-to-market pension accounting adjustments, FedEx said it could only provide adjusted earnings guidance.

Fedexr projected adjusted EPS of between USD 10.95 per diluted share and USD 11.45 per diluted share before mark-to-market pension accounting adjustments, but including TNT Express results, up from a previously projected range of USD 10.85 per share to USD 11.35 per share.

Excluding TNT Express-related integration expenses, outlook restructuring programme costs and intangible asset amortisation, FedEx projects earnings of USD 11.85 per diluted share to USD 12.35 per diluted share for the full 2017 fiscal year. Capital expenditures for the year, which include TNT Express, are expected to reach USD 5.6 billion, up 16.7% from USD 4.8 billion in fiscal 2016.

Transreproter Logo