- 22 June 2016
- Transport / Logistics Services
International delivery and logistics company FedEx has posted a USD $70 million loss for Q4 of 2015-16, but revenues were up to $13bn, compared to $12.1bn for the same period in 2014-15.
The loss was mainly down to mark-to-market pension adjustments and expenses related to buying TNT. This is a significant improvement on the $895 million net loss for Q4, 2015. If these costs are taken out of the equation, the company’s adjusted net income was $897 million, showing real health in the corporation.
In the financial year to 2016 as a whole, FedEx has had a total revenue of $50.4 billion, up from $47.5bn last year. Its net income was $1.82bn. 2016 was the first time that FedEx revenues had topped $50 billion.
Commenting on the results, Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer, said, “Fiscal 2016 was a successful year for FedEx in many ways.
“Of particular note was our corporate operating margin improvement. Our May 25 acquisition of TNT Express capped a historic year of significant accomplishments that benefited shareowners, team members and customers, and strongly positions FedEx for long-term profitable growth.”
The FedEx Express Segment reported an adjusted operating income of $757m for financial year 2016, up from $598m. FedEx Ground’s operating income moved up to $656m from $603m.
In the coming year or so there may well be bumps in the road for the company as mergers are extremely disruptive to business, but with overall revenues very strong, it is hard to imagine that FedEx will suffer much from the acquisition of TNT. Indeed, it should pose a real threat to its rivals in the business.