PARCEL and express carrier FedEx Corp's fiscal 2018 earnings that ended on May 31 skyrocketed by 52 per cent to US$4
PARCEL and express carrier FedEx Corp's fiscal 2018 earnings that ended on May 31 skyrocketed by 52 per cent to US$4.57 billion, while fourth quarter revenues rose 10 per cent year on year to $17.3 billion, exceeding analyst expectations by $60 million, according to a report from investment analyst Seeking Alpha. FedEx attributed the jump in net income primarily to an estimated $2.1 billion in tax benefits, including a $1.6 billion reduction in the company's net US deferred tax liability that stemmed from the lowering of the federal tax rate for US-based corporations from 35 per cent to 21 per cent, reported American Shipper.
Operating results in the fourth quarter also benefitted from higher base rates, increased volume at FedEx Ground and FedEx Freight, and a favourable net impact from fuel, the company said. Those factors were offset in part by negative impacts from an acceleration in wage increases for certain hourly employees.
'It was a year of opportunities and challenges - anticipated and unexpected - and FedEx emerged more competitive than ever,' said FedEx Corp chief executive officer Frederick Smith. 'In all my years at FedEx, I have never been so optimistic and so sure of our strategy and our ability to deliver an exciting future.'
Looking ahead to the company's fiscal 2019 year, the company forecasts revenue growth of nine per cent and improved earnings.
'Our fiscal 2019 results will benefit from our continued focus on revenue quality as well as from synergy realisation as we make progress in combining TNT Express with FedEx Express,' said FedEx Corp chief financial officer Alan Graf.
