FedEx Reveals Q1 Figures

FedEx Reveals Q1 Figures

Is US giant booming in solid economy?

FedEx has released its Q1 results which show earnings on the rise within a strong US economy.

“FedEx delivered higher first-quarter earnings driven by solid execution of our business plan and a strong U.S. economy,” said Frederick W. Smith, FedEx Corp., CEO.

“We are very optimistic about our prospects for profitable growth and remain confident we will reach our goal to improve FedEx Express operating income by US$1.2 billion to $1.5 billion in fiscal 2020 versus fiscal 2017.”

Operating income improved during the quarter, benefiting from higher volumes, increased yields and a favorable net impact of fuel at all transportation segments.

Net results benefited by $0.50 per diluted share as a result of the enactment of the Tax Cuts and Jobs Act (TCJA), primarily from a lower statutory income tax rate.

FedEx recognized substantially higher variable compensation accruals during the quarter, as last year’s first quarter results were negatively impacted by the NotPetya cyberattack at TNT Express.

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Last year’s earnings included the estimated negative impacts of the NotPetya cyberattack affecting TNT Express ($300 million or $0.79 per diluted share) and Hurricane Harvey ($0.02 per diluted share).

FedEx is unable to forecast the fiscal 2019 year-end mark-to-market (MTM) retirement plan accounting adjustments.

As a result, the company is unable to provide a fiscal 2019 earnings per share or effective tax rate (ETR) outlook on a GAAP basis.

“As expected, the quarter’s results were affected by our decision to invest in our team members following the passage of the Tax Cuts and Jobs Act,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer.

“We remain committed to increasing earnings, margins, cash flows and returns this year,” he concluded.

Read more: FedEx Connection Offers New UAE Route

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