FedEx has reported its fourth quarter results, highlighting increased US domestic and international export package volumes.
The company’s revenue was up 12.5% to $25bn for the fourth quarter ended 31 May, compared to $22.2bn in the same quarter last year.
Operating revenue was down 13.3% to $1.55bn, although adjusted (non-GAAP) operating revenue was $2.09bn, up 3.5%.
FedEx’s fourth quarter operating margin was 8.4% vs 9.1% in the same period year. FedEx pointed out that it had achieved cost savings, but nonetheless, costs weighed on its operating margin despite revenue gains.
Express operating income was $1.7bn, a rise of 14% year on year. The operating margin was 7.7%.
Federal Express segment operating results improved during the quarter, driven by higher U.S. domestic and International Priority package yields, continued cost savings from transformation initiatives, and increased U.S. domestic and international export package volume.
These factors were partially offset by increased purchased transportation and wage rates, higher variable incentive compensation expenses, and the financial impacts of global trade policy changes.
“Team FedEx delivered an impressive finish to a strong fiscal year, providing excellent service to our customers and successfully executing on our transformation initiatives,” said Raj Subramaniam, FedEx president and chief executive officer.
“Our profitable growth strategy is working. We are building momentum across our global industrial network, driving structural improvements and winning in high-value growth markets.”
The spin-off of FedEx Freight into a new publicly traded company was finalized on 1 June.
Subramaniam added: “With the successful spin-off of FedEx Freight, we are entering this next chapter positioned to grow while further optimizing our network, lowering our cost to serve, creating meaningful long-term value, and driving robust free cash flow.”
