FedEx reports improved results for 4QFY2016 and FY2016

FedEx reported (21-Jun-2016) the following results for 4QFY2015/16 and FY2015/16, ended 31-May-2016:

4QFY2016:

• Revenue: USD13 billion, +7.4% year-on-year;
• Operating loss: USD68 million, compared to USD1.32 billion loss in 4QFY2015;
• Net loss: USD70 million, compared to USD895 million loss in 4QFY2015.

Operating results benefited from improved yield management, continued positive impacts from FedEx Express' profit improvement programme, strong volume growth at FedEx Ground, one additional operating day and the positive net impact of fuel.

FY2016:

• Revenue: USD50.4 billion, +6.1%;
• Operating income: USD3.08 billion, +64.7%;
• Net income: USD1.82 billion, +73.3%.

The company reported adjusted earnings per diluted share of USD10.80 for FY2016. Adjusted earnings for FY2017 are projected to be USD11.75 to USD12.25 per diluted share, excluding TNT Express results and pension accounting adjustments. The outlook assumes continued moderate economic growth. Capital spending for FY2016 was USD4.8 billion. Capital spending for FY2017 is expected to be approximately USD5.1 billion, including aircraft deliveries to support the FedEx Express fleet modernisation programme and ongoing expansion of the FedEx Ground network. The company said FY2017 will be a year of transition as it develops a business plan and validates and refines its integration plan for TNT Express. [more - original PR]