FedEx profit up 1.3% to USD 700m on revenue growth of 19.2%
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.
Tag Keyword: FedEx Corp , Revenues , Net Profit , TNT Express