FedEx and other private businesses that offer mail services have been very popular for a number of reasons. Lately, we have seen a marked increase in the use of these services due to e-commerce and how much more reliable Fed Ex can be as compared to the United States Postal Service and this is very good news for logistics professionals as there will be increasing demand from these sorts of companies.
The Ground unit’s operating income rose 9% to $656 million as revenue climbed 20%, due in part to changing how SmartPost revenue was counted and in part to higher volume and rates.
FedEx Freight operating income was unchanged at $137 million, though revenue rose 2% to $1.61 billion. Profits were hurt by higher pay and benefits.
The company’s forecast for its current fiscal year was $11.75 to $12.25 per share, up from $10.80 in the fiscal year just concluded.
The company’s earnings including a series of adjustments such as pension accounting was a $70 million loss, or 26 cents per share, an improvement over the loss including pension and other one-time costs of $895 million or $3.16 per share, in the prior-year period.
Pension costs in the quarter just ended reduced earnings by $3.47 per share, while costs and gains related to the acquisition of TNT, the Dutch package and freight carrier, shaved 6 cents from earnings.
Graf also said there won’t be additional earnings from operations at TNT until its 2018 fiscal year.
FedEx ranks No. 2 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.