FedEx – steady growth in Q1 despite spike

Revenues and profits saw steady growth at FedEx Corp in its first quarter (Q1) in its latest financial report. Revenues grew to $19.3bn in Q1 compared to $17 billion in 2019. Net income grew to $1.59bn as against $745 million in the same period in 2019.

“Our earnings growth underscores the importance of our business initiatives and investments over the last several years, and, in many ways, the world has accelerated to meet our strategies,” said Frederick W. Smith, FedEx Corp. chairman and chief executive officer. “I would like to thank our team members whose efforts during this time have helped keep the world’s health care, industrial and at-home supply chains moving despite the challenges of the global pandemic.”

FedEx Express and FedEx Ground – International Priority and domestic residential packages – led the growth thanks to the spike in demand for e-commerce during the pandemic, though all divisions did well. Staff and customer safety measures as well as costs to support the sudden growth and to expand services offset the growth in net income.

“While business demand improved in the first quarter, continued uncertainties cloud our ability to forecast full-year earnings,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “However, we expect to continue to benefit from our strong position in the U.S. and international package and freight markets, yield improvement opportunities and cost management initiatives.”