FedEx profits hit by pandemic

Reporting its 4th Quarter results, FedEx said that profits overall had been hit hard by the pandemic economic conditions. Adjusted profit fell by almost 50% to $663 million, with revenues dropping to $17.4 billion – down slightly from $17.8bn in 2019.

“Though our fiscal fourth quarter performance was severely affected by the COVID-19 pandemic, I am extremely proud of the herculean efforts of our team members,” said Frederick W. Smith, FedEx Corp. chairman and CEO. “With safety as the first priority, these men and women provided essential transportation of critical supplies across the globe and delivered peak-level e-commerce volumes in the United States. As a result of the strategic investments we have made to enhance our capabilities and efficiencies, FedEx is well positioned to support and benefit from the reopening of the global economy.”

The pandemic hit nearly every revenue and expense line item. Commercial volumes fell due to business closures, though residential deliveries at FedEx Ground surged. The surge also put demand on FedEx Express transpacific and charter flights.

Operating costs increased by an estimated $125 million thanks to costs of personal protective equipment and medical/safety supplies combined with additional security and cleaning services to protect staff and customers.